How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
When it comes to planning for the future, investing is an essential component of a well-structured financial plan. With the rise of systematic investment plans (SIPs), investors can now invest a fixed amount periodically to achieve their long-term financial goals. In this blog post, we’ll explore the power of ₹5,000 monthly SIP and its potential returns over a period of 10, 20, and 30 years.
According to SEBI’s SIP calculator, a person investing ₹5,000 monthly at an annual return of 15% per annum will earn a significant amount in the long run. Let’s take a closer look at the numbers.
10 years
In 10 years, the same investment of ₹5,000 per month will fetch a return of ₹13.76 lakh. This is impressive, considering the total investment value would be ₹6 lakh, which is the sum of the monthly investments over a period of 10 years. This means that the investor would earn a return of 128.4% over the 10-year period, making it an attractive option for those looking to grow their wealth.
20 years
Fast-forward to 20 years, and the same investment strategy will yield an astonishing return of ₹74.86 lakh. The total investment value would be ₹12 lakh, which is the cumulative effect of the monthly investments over two decades. This represents a return of 524.5% over the 20-year period, making it an excellent option for those with a long-term perspective.
30 years
Now, let’s take a look at the impact of investing ₹5,000 monthly over a period of 30 years. In this scenario, the same investment strategy would fetch a return of ₹3.46 crore. The total investment value would be ₹60 lakh, which is the sum of the monthly investments over three decades. This represents a return of 6,920% over the 30-year period, making it an extremely attractive option for those who start early and are willing to hold on to their investment for the long haul.
Key takeaways
As demonstrated above, investing ₹5,000 monthly in a SIP at 15% per annum can lead to significant returns over the long term. The key takeaways from this analysis are:
- The power of compounding: The returns on your investment increase exponentially over time due to the power of compounding.
- The importance of starting early: The earlier you start investing, the more time your money has to grow, leading to higher returns.
- The impact of patience: Holding on to your investment for the long term is crucial to achieving your financial goals.
Conclusion
Investing ₹5,000 monthly in a SIP at 15% per annum can be a lucrative option for those looking to grow their wealth over the long term. With SEBI’s SIP calculator, investors can easily calculate the returns on their investment and plan their financial future accordingly.
As the article from Financial Express highlights, starting with a ₹5,000 monthly SIP can help you retire with ₹3.5 crore, provided you start early and hold on to your investment for the long haul. By understanding the potential returns on your investment, you can make informed decisions about your financial future and achieve your goals.
