How much will a person earn with ₹25,000/month SIP in 10, 20, 30 years?
Investing in a Systematic Investment Plan (SIP) is a popular way to build wealth over time. With a consistent investment strategy, one can achieve their financial goals, including creating a corpus of ₹1 crore in 10 to 20 years. In this blog post, we will explore how much a person can earn with a monthly SIP of ₹25,000 at 12% per annum for 10, 20, and 30 years.
According to SEBI’s SIP calculator, a person investing ₹25,000 monthly in a SIP at 12% per annum will earn a staggering ₹57.51 lakh in 10 years, with a total investment value of ₹30 lakh. This means that the investment will grow by approximately 92% in just 10 years.
In 20 years, the same investment will give a return of ₹2.47 crore with a total investment value of ₹60 lakh. This is a growth of over 9 times the initial investment, with a return of approximately 1230%.
In 30 years, the investment would fetch ₹8.74 crore, with a total investment value of ₹90 lakh. This is a growth of over 35 times the initial investment, with a return of approximately 3480%.
These figures are based on the assumption that the investment earns a consistent return of 12% per annum, without any withdrawals or taxes. In reality, market fluctuations and taxes may affect the actual returns, but these figures give an idea of the potential returns that can be achieved with a disciplined investment strategy.
To make these numbers more relatable, let’s consider a few examples:
- A person who starts investing ₹25,000 monthly at the age of 25 can potentially earn over ₹57 lakh by the time they are 35.
- A person who starts investing ₹25,000 monthly at the age of 35 can potentially earn over ₹2.47 crore by the time they are 55.
- A person who starts investing ₹25,000 monthly at the age of 55 can potentially earn over ₹8.74 crore by the time they are 85.
These examples illustrate the power of compounding and the importance of starting early. Even small, consistent investments can add up to significant sums over time.
So, how can you make ₹1 crore in 10 to 20 years without financial strain? Here are a few tips:
- Start early: As we’ve seen, starting early can make a significant difference in the growth of your investment.
- Invest consistently: Consistency is key to building wealth over time. Try to invest a fixed amount at regular intervals.
- Choose the right investment: Select an investment that aligns with your risk tolerance and financial goals. For example, if you’re looking for a low-risk investment, you may consider a fixed deposit or a liquid mutual fund.
- Avoid withdrawals: Try to avoid withdrawing from your investment, especially in the early years. This will allow your investment to grow exponentially over time.
- Monitor and adjust: Periodically review your investment portfolio and adjust it as needed to ensure that it remains aligned with your goals and risk tolerance.
In conclusion, investing ₹25,000 monthly in a SIP at 12% per annum can lead to significant returns over 10, 20, and 30 years. By starting early, investing consistently, choosing the right investment, avoiding withdrawals, and monitoring and adjusting your portfolio, you can potentially earn ₹57.51 lakh in 10 years, ₹2.47 crore in 20 years, or ₹8.74 crore in 30 years.
