How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Investing in a systematic investment plan (SIP) is one of the most effective ways to grow your wealth over time. With a SIP, you invest a fixed amount of money at regular intervals, which helps you average out market fluctuations and earn higher returns in the long run. But how much can you expect to earn with a regular SIP investment? In this blog post, we’ll explore the power of SIP investing by calculating the potential returns on a ₹5,000 monthly SIP over 10, 20, and 30 years.
According to SEBI’s SIP calculator, investing ₹5,000 monthly in a SIP at a rate of 15% per annum will yield remarkable returns. Here are the results:
10 years:
- Total investment: ₹6 lakh (₹5,000 x 12 x 10)
- Returns: ₹13.76 lakh
- Total value: ₹19.76 lakh
In just 10 years, your ₹5,000 monthly SIP investment will grow to ₹19.76 lakh, with a total investment value of ₹6 lakh. This means you’ll have earned a staggering ₹13.76 lakh, which is approximately 2.3 times your total investment.
20 years:
- Total investment: ₹12 lakh (₹5,000 x 12 x 20)
- Returns: ₹74.86 lakh
- Total value: ₹86.86 lakh
Fast-forward 20 years, and your ₹5,000 monthly SIP investment will have grown to a whopping ₹86.86 lakh, with a total investment value of ₹12 lakh. This means you’ll have earned a staggering ₹74.86 lakh, which is approximately 6.2 times your total investment.
30 years:
- Total investment: ₹18 lakh (₹5,000 x 12 x 30)
- Returns: ₹3.46 crore
- Total value: ₹3.46 crore
After 30 years, your ₹5,000 monthly SIP investment will have grown to a staggering ₹3.46 crore, with a total investment value of ₹18 lakh. This means you’ll have earned a mind-boggling ₹3.28 crore, which is approximately 18.7 times your total investment.
These calculations demonstrate the power of regular SIP investing, even with a relatively modest investment amount of ₹5,000 per month. By consistently investing in a SIP, you can create a substantial corpus over time, which can help you achieve your long-term financial goals.
Key takeaways:
- The earlier you start investing, the more time your money has to grow.
- Consistency is key: Regular SIP investments can help you average out market fluctuations and earn higher returns.
- Even small, regular investments can add up to significant sums over time.
- Compounding returns can lead to exponential growth, making SIP investing a powerful tool for long-term wealth creation.
Conclusion:
Investing in a SIP is a great way to build wealth over time, even with a modest investment amount. By consistently investing ₹5,000 per month, you can create a substantial corpus that can help you achieve your long-term financial goals. Whether you’re planning for retirement, a down payment on a house, or simply building an emergency fund, a SIP investment can be a powerful tool for achieving financial stability and security.
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