How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Starting a Systematic Investment Plan (SIP) with a monthly investment of ₹5,000 can be a smart way to build wealth over time. But, have you ever wondered how much you can earn with such an investment? In this blog post, we will explore the returns you can expect from a ₹5,000 monthly SIP 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 a significant amount in just 10 years. In fact, the calculator shows that the investment will earn a return of ₹13.76 lakh in 10 years, with a total investment value of ₹6 lakh. This means that the investment will grow by approximately 2.3 times the initial investment in just 10 years.
But, what about longer-term investments? How much can you earn with a ₹5,000 monthly SIP in 20 years? According to the SEBI’s SIP calculator, the same investment will give a return of ₹74.86 lakh in 20 years, with a total investment value of ₹12 lakh. This means that the investment will grow by approximately 5.5 times the initial investment in 20 years.
And, what about the ultimate goal of saving for retirement? Can a ₹5,000 monthly SIP help you achieve this goal? According to the calculator, investing ₹5,000 monthly in a SIP at 15% per annum will fetch a whopping ₹3.46 crore in 30 years. This means that the investment will grow by approximately 69 times the initial investment in 30 years.
These numbers may seem staggering, but they are based on a relatively simple calculation. The key to achieving such impressive returns is consistency and patience. By investing a fixed amount regularly, you can take advantage of the power of compounding and watch your wealth grow over time.
So, how can you start a ₹5,000 monthly SIP? The process is relatively simple. You can start by selecting a mutual fund scheme that aligns with your investment goals and risk tolerance. Then, you can set up a SIP with a fixed amount and frequency, such as monthly or quarterly. The rest will be taken care of by the mutual fund company, which will invest your money in a diversified portfolio of stocks, bonds, and other securities.
In addition to the impressive returns, a ₹5,000 monthly SIP also offers other benefits. For example, it can help you build a habit of regular savings, which is essential for achieving long-term financial goals. It can also help you diversify your investments, which can reduce risk and increase returns over time.
In conclusion, a ₹5,000 monthly SIP can be a powerful tool for building wealth over time. With a rate of return of 15% per annum, the investment can earn impressive returns in just 10, 20, and 30 years. By starting a SIP today, you can set yourself up for financial success in the long run.
