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 popular way to grow your wealth over time. It involves investing a fixed sum of money at regular intervals, usually monthly, in a mutual fund or other investment instrument. SIPs are a great way to start investing, especially for those who are new to the world of investing. One of the benefits of SIPs is that they help you invest regularly, without having to worry about market fluctuations.
In this post, we’ll explore how much a person can earn with a monthly SIP of ₹5,000, and how the returns grow over time. We’ll also look at the total investment value and the returns in 10, 20, and 30 years, assuming a 15% annual return.
10-year SIP:
According to SEBI’s SIP calculator, investing ₹5,000 monthly in a SIP at 15% per annum will earn you ₹13.76 lakh in 10 years. This is a significant return, considering you’ve only invested ₹6 lakh over the decade. This means that the returns earned are ₹7.76 lakh, which is a 128.33% return on your investment.
20-year SIP:
In 20 years, the same investment will give you a return of ₹74.86 lakh, with a total investment value of ₹12 lakh. This means that the returns earned are ₹62.86 lakh, which is a 524.5% return on your investment. This is a staggering return, and it’s clear that the power of compounding can work in your favor over a longer period.
30-year SIP:
Investing ₹5,000 monthly in a SIP at 15% per annum for 30 years will fetch you an astonishing ₹3.46 crore. The total investment value in this case is ₹12 lakh, which means that the returns earned are ₹3.34 crore. This is a 279.33% return on your investment, and it’s clear that the power of compounding can work wonders over a longer period.
As you can see, the returns on a SIP investment grow exponentially over time. This is because the power of compounding allows your returns to generate returns of their own, leading to a snowball effect that can lead to significant wealth creation.
Key Takeaways:
- The power of compounding is a powerful force that can help your investments grow significantly over time.
- Investing ₹5,000 monthly in a SIP at 15% per annum can lead to significant returns over time, even if you invest for just 10 years.
- The longer you invest, the more significant the returns are likely to be. Investing for 20 or 30 years can lead to returns that are several times higher than what you would earn if you invested for 10 years.
- The total investment value is important, but it’s the returns earned that can make a significant difference in your overall wealth.
Conclusion:
Investing in a SIP is a great way to start building your wealth over time. With a monthly investment of ₹5,000 and an annual return of 15%, you can earn significant returns over 10, 20, and 30 years. The power of compounding is a powerful force that can help your investments grow exponentially over time. Whether you’re starting early or later in life, investing in a SIP is a great way to build a secure financial future.
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