How much will a person earn with ₹5,000 monthly SIP in 10, 20 & 30 years?
Investing in a Systematic Investment Plan (SIP) can be a great way to build wealth over time. With a SIP, you can invest a fixed amount of money at regular intervals, which helps to reduce the impact of market volatility and timing risks. But how much can you expect to earn with a SIP investment of ₹5,000 per month?
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 some impressive returns over the long term. In this blog post, we’ll explore the potential earnings you can expect from a ₹5,000 monthly SIP in 10, 20, and 30 years.
10-year SIP:
According to SEBI’s SIP calculator, if you invest ₹5,000 per month for 10 years at a rate of return of 15% per annum, you can expect to earn a total return of ₹13.76 lakh. This means that your total investment value will be ₹6 lakh, which represents a return of 127.66% on your investment.
Here’s a breakdown of how your investment will grow over the 10-year period:
- Total investment: ₹6,00,000 (₹5,000 per month for 12 years)
- Total return: ₹13,76,000
- Rate of return: 15% per annum
- Time period: 10 years
20-year SIP:
If you continue to invest ₹5,000 per month for 20 years at a rate of return of 15% per annum, your total return could be an impressive ₹74.86 lakh. This means that your total investment value will be ₹12 lakh, which represents a return of 523.83% on your investment.
Here’s a breakdown of how your investment will grow over the 20-year period:
- Total investment: ₹12,00,000 (₹5,000 per month for 24 years)
- Total return: ₹74,86,000
- Rate of return: 15% per annum
- Time period: 20 years
30-year SIP:
If you continue to invest ₹5,000 per month for 30 years at a rate of return of 15% per annum, your total return could be a staggering ₹3.46 crore. This means that your total investment value will be ₹18 lakh, which represents a return of 1,826.67% on your investment.
Here’s a breakdown of how your investment will grow over the 30-year period:
- Total investment: ₹18,00,000 (₹5,000 per month for 36 years)
- Total return: ₹3,46,00,000
- Rate of return: 15% per annum
- Time period: 30 years
As you can see, the power of compound interest can be a powerful force in building wealth over the long term. By investing ₹5,000 per month for 10, 20, or 30 years, you can potentially earn some impressive returns and build a significant nest egg.
Conclusion:
Investing in a SIP can be a great way to build wealth over time, especially if you start early and are consistent with your investments. By investing ₹5,000 per month for 10, 20, or 30 years, you can potentially earn some impressive returns and build a significant nest egg.
Remember to always assess your financial goals and risk tolerance before investing, and to consult with a financial advisor if you’re unsure about the best investment strategy for you. With discipline and consistency, you can potentially achieve your financial goals and build a brighter financial future.
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