How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Systematic Investment Plans (SIPs) have become a popular investment option for Indians, especially for those who are new to the world of investments. SIPs allow investors to invest a fixed amount of money at regular intervals, which helps to reduce the impact of market volatility and timing risks. With a SIP, you can invest a small amount of money regularly and benefit from the power of compounding.
In this blog post, we will explore how much a person can earn with a monthly SIP of ₹5,000 at a rate of 15% per annum. We will also examine how the returns change over different time periods, specifically 10, 20, and 30 years.
As per SEBI’s SIP calculator, a person investing ₹5,000 monthly in a SIP at 15% per annum will earn ₹13.76 lakh in 10 years, with a total investment value of ₹6 lakh. This means that the investor will earn a return of ₹7.76 lakh over 10 years.
Now, let’s take a look at what happens when we extend the investment period to 20 years. According to the SEBI calculator, the same investment of ₹5,000 per month at 15% per annum will give a return of ₹74.86 lakh with a total investment value of ₹12 lakh. This means that the investor will earn a whopping return of ₹62.86 lakh over 20 years.
But what happens when we stretch the investment period to 30 years? In this case, the same SIP of ₹5,000 per month at 15% per annum will fetch a staggering return of ₹3.46 crore with a total investment value of ₹18 lakh. This means that the investor will earn a return of ₹3.28 crore over 30 years.
These numbers are indeed impressive, and they clearly demonstrate the power of compounding and the importance of starting to invest early. As the article from Financial Express highlights, “starting a SIP of ₹5,000 and retiring with ₹3.5 crore is possible, but it takes 30 years of discipline and consistency.”
So, what can we learn from these numbers? First and foremost, it’s clear that the earlier you start investing, the more time your money has to grow. This is because compounding occurs over a longer period, which means that your returns will be significantly higher.
Secondly, it’s clear that discipline and consistency are key to achieving your financial goals. By investing a fixed amount of money every month, you can take advantage of the power of compounding and watch your investments grow over time.
Finally, it’s clear that the returns on your investments will be significantly higher if you can invest for a longer period. This is because the power of compounding grows exponentially over time, which means that even small increases in your returns can add up to significant sums.
In conclusion, investing ₹5,000 per month in a SIP at 15% per annum can lead to impressive returns over different time periods. While the returns may be lower in the short term, they can add up to significant sums over longer periods of time. By starting to invest early, being disciplined and consistent, and investing for a longer period, you can achieve your financial goals and build a secure financial future.
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