How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
In today’s fast-paced world, financial planning and investing have become crucial aspects of our lives. With the rising cost of living and increasing expenses, it’s essential to plan your finances wisely and make the most of your hard-earned money. One of the most popular and effective investment strategies is the Systematic Investment Plan (SIP), which involves investing a fixed amount of money at regular intervals, usually monthly or quarterly. In this blog post, we’ll explore how much a person can earn with a ₹5,000 monthly SIP in 10, 20, and 30 years, using SEBI’s SIP calculator.
10-Year SIP
According to SEBI’s SIP calculator, if a person invests ₹5,000 every month for 10 years at a rate of return of 15% per annum, they can expect to earn ₹13.76 lakh. The total investment value would be ₹6 lakh, which means the investor would earn a return of ₹7.76 lakh.
Here’s a breakdown of the numbers:
- Monthly investment: ₹5,000
- Total investment (10 years): ₹6 lakh
- Return on investment: ₹7.76 lakh
- Total value (10 years): ₹13.76 lakh
20-Year SIP
Fast forward to 20 years, and the numbers become even more impressive. With the same investment of ₹5,000 every month, the investor can expect to earn a whopping ₹74.86 lakh. The total investment value would be ₹12 lakh, and the return on investment would be ₹62.86 lakh.
Here’s a breakdown of the numbers:
- Monthly investment: ₹5,000
- Total investment (20 years): ₹12 lakh
- Return on investment: ₹62.86 lakh
- Total value (20 years): ₹74.86 lakh
30-Year SIP
Now, let’s take a look at the numbers for a 30-year SIP. With the same monthly investment of ₹5,000, the investor can expect to earn an astonishing ₹3.46 crore. The total investment value would be ₹18 lakh, and the return on investment would be ₹3.28 crore.
Here’s a breakdown of the numbers:
- Monthly investment: ₹5,000
- Total investment (30 years): ₹18 lakh
- Return on investment: ₹3.28 crore
- Total value (30 years): ₹3.46 crore
Conclusion
As we can see, the power of compounding is incredible. A modest monthly investment of ₹5,000 can lead to significant returns over time. Whether it’s 10, 20, or 30 years, the key to achieving these returns is consistency and discipline. By investing regularly and giving your money time to grow, you can build a substantial corpus and achieve your financial goals.
Source
Note: The above calculation is based on SEBI’s SIP calculator and assumes a rate of return of 15% per annum. The actual returns may vary depending on the performance of the investment and market conditions.
