How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Starting a Systematic Investment Plan (SIP) is a great way to invest in the stock market, especially for those who are new to investing. SIPs help individuals invest a fixed amount of money at regular intervals, reducing the impact of market volatility on their investments. A SIP can be a powerful tool for building wealth over the long term, but the question remains – how much can you expect to earn from a SIP?
In this blog post, we’ll explore the power of a ₹5,000 monthly SIP and how it can help you build a substantial corpus over time. We’ll also use SEBI’s SIP calculator to determine how much you can earn with a ₹5,000 monthly SIP in 10, 20, and 30 years.
10-year SIP:
Let’s start with a 10-year SIP. According to SEBI’s SIP calculator, if you invest ₹5,000 per month at a rate of return of 15% per annum, you can expect to earn ₹13.76 lakh in 10 years. That’s not all – you’ll also have invested a total of ₹6 lakh during this period.
Here’s a breakdown of the calculations:
- Total investment: ₹6 lakh (₹5,000 per month for 10 years)
- Total returns: ₹13.76 lakh
- Total value of investment: ₹19.76 lakh (₹6 lakh + ₹13.76 lakh)
As you can see, a 10-year SIP can help you earn a significant amount of money, especially if you start early and consistently invest ₹5,000 per month.
20-year SIP:
Now, let’s move on to a 20-year SIP. With the same investment amount and rate of return, you can expect to earn a whopping ₹74.86 lakh in 20 years. That’s a significant increase from the 10-year SIP, and it’s no surprise – the power of compounding is a powerful force in building wealth.
Here’s a breakdown of the calculations:
- Total investment: ₹12 lakh (₹5,000 per month for 20 years)
- Total returns: ₹74.86 lakh
- Total value of investment: ₹86.86 lakh (₹12 lakh + ₹74.86 lakh)
As you can see, a 20-year SIP can help you build a substantial corpus, and it’s definitely worth considering if you’re looking to create a long-term wealth plan.
30-year SIP:
Finally, let’s look at a 30-year SIP. With the same investment amount and rate of return, you can expect to earn an astonishing ₹3.46 crore in 30 years. That’s a staggering amount, and it’s a testament to the power of long-term investing and compounding.
Here’s a breakdown of the calculations:
- Total investment: ₹18 lakh (₹5,000 per month for 30 years)
- Total returns: ₹3.46 crore
- Total value of investment: ₹3.64 crore (₹18 lakh + ₹3.46 crore)
As you can see, a 30-year SIP can help you build a substantial corpus, and it’s definitely worth considering if you’re looking to create a long-term wealth plan.
Conclusion:
In conclusion, a ₹5,000 monthly SIP can be a powerful tool for building wealth over the long term. Whether you’re looking to create a 10-year, 20-year, or 30-year plan, the power of compounding can help you earn a significant amount of money.
Remember, the key to successful SIP investing is to start early, invest consistently, and be patient. With a ₹5,000 monthly SIP, you can create a substantial corpus and achieve your long-term financial goals.
Source:
