How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Investing in a Systematic Investment Plan (SIP) is a smart way to grow your wealth over time. It allows you to invest a fixed amount of money at regular intervals, regardless of the market conditions. The power of compounding can work wonders for your investments, and a small investment of ₹5,000 per month can fetch significant returns in the long run.
To understand the impact of a ₹5,000 monthly SIP on your investments, let’s take a look at the returns you can expect in 10, 20, and 30 years. According to SEBI’s SIP calculator, a person investing ₹5,000 monthly in a SIP at a rate of 15% per annum will earn substantial returns over the years.
10 years
In 10 years, a ₹5,000 monthly SIP will give you a total investment value of ₹6 lakh (₹5,000 x 12 x 10) and a return of ₹13.76 lakh, taking the total value to ₹19.76 lakh. This means that your initial investment of ₹6 lakh will grow to ₹19.76 lakh in just 10 years, with an impressive return of 228.67%.
20 years
Fast forward to 20 years, and the same investment will give you a total investment value of ₹12 lakh (₹5,000 x 12 x 20) and a return of ₹74.86 lakh, taking the total value to ₹86.86 lakh. This is an incredible return of 640.15%, making your initial investment of ₹12 lakh grow to ₹86.86 lakh in 20 years.
30 years
Now, let’s look at the returns you can expect in 30 years. A ₹5,000 monthly SIP will give you a total investment value of ₹18 lakh (₹5,000 x 12 x 30) and a return of ₹3.46 crore, taking the total value to ₹3.46 crore. This is an astonishing return of 6,881.11%, making your initial investment of ₹18 lakh grow to a staggering ₹3.46 crore in 30 years.
As you can see, the power of compounding can work wonders for your investments. Even a small investment of ₹5,000 per month can fetch significant returns in the long run. The key to success lies in starting early, being consistent with your investments, and having a long-term perspective.
Conclusion
Investing in a SIP is a great way to grow your wealth over time. With a small investment of ₹5,000 per month, you can fetch significant returns in the long run. As we’ve seen, a ₹5,000 monthly SIP can give you returns of ₹13.76 lakh in 10 years, ₹74.86 lakh in 20 years, and a staggering ₹3.46 crore in 30 years. So, if you’re looking to create a substantial corpus for your retirement or other financial goals, consider starting a SIP today.
