If you want to get Rs 1 crore in 20 years, your SIP investment per month will be Rs 10,009, your total investment will be Rs 24.02 lakh, while you will get capital gains of Rs 75.98 lakh on it.
SIP Investment: Systematic investment plans (SIPs) in mutual funds have become an effective tool for investment because of their good returns over short durations. They give you the freedom to start investments with as little as Rs 500, and with a moderate monthly investment in an SIP, you can accumulate significant wealth in a duration of just 10 years. Since the investor also gets compound interest on SIP investments, long-term investments help you accumulate more wealthWhile SIP investments are available in equity, debt, gold, and other combinations of mutual funds, one can choose the short-, medium-, or long-term investment time duration.
SIP investments are linked to equity performance; one also gets compound interest, so capital grows exponentially with time.
Adhil Shetty, CEO, BankBazaar.com, says, "In the long run, even high-risk investments like equity become extremely safe when done via mutual funds, and your chances of negative portfolio returns are virtually nil in Indian equities over a five-year horizon," says .
Melvyn Santarita, Analyst, Manager Research, Morningstar Investment Advisor India, says, "Investing in SIPs presents several advantages, especially in the context of today's uncertain economic environment. SIPs enable investors to hedge against the risks associated with market volatility by spreading their investments over time."
In this write-up, we will tell you how you can accumulate Rs 1 crore with SIP investment in 10, 15, and 20 years.For calculations for all durations, we are taking a standard annualised growth rate of 12 per cent.
How to accumulate Rs 1 crore in 10 years
Since the aim here is to become a crorepati in 10 years, the SIP per month will be Rs 43,041.
In 10 years, one will invest Rs 51.65 lakh, while they will get capital gains of Rs 48.35 lakh in the same duration.
How to accumulate Rs 1 crore in 15 years
If you want to accumulate Rs 1 crore in 15 years, your SIP investment per month will be Rs 19,819, and you will invest Rs 35.67 lakh overall.
After this investment, you will get capital gains of Rs 64.33 lakh, while the total returns will be Rs 1 crore.
How to accumulate Rs 1 crore in 20 years
If you want to get Rs 1 crore in 20 years, your SIP investment per month will be Rs 10,009.
The total investment will be Rs 24.02 lakh, while you will get capital gains of Rs 75.98 lakh on it.
So, the total return in 20 years will be Rs. 1 crore.
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