How much time does it take to earn Rs 1 crore from SIP of Rs 1000, 2000, 3000 and 5000?
Systematic Investment Plan (SIP) has become the preferred choice among all investors who wish to accumulate money gradually over time. An investor can deposit a fixed amount at regular intervals and it will see compounding growth over the years.
SIP is considered to be a favourable investment where the investor can start with a small amount. The investor will get high returns by depositing a fixed amount as it grows over time. When a person chooses a fixed investment amount, it is automatically deducted from the account and invested in the selected mutual fund.
The person gets the mutual fund allotted based on his/her Net Value Assets (NVA) on the date of starting the investment. As the SIP installments get accumulated, it starts adding additional components and starts reinvesting the money which grows with the market trends.
One should start SIP as early as possible to get more and better returns. While choosing, the investor should take cues from the market as to which mutual fund can give good returns and plan the SIP accordingly.
SIP of 9000 per month
An investor can earn Rs 1 crore by investing just Rs 9000 every month in SIP. A calculation shows that if the investor deposits Rs 9000 for 22 years, he will earn Rs 1 crore. The investor will deposit around 23,76,000 in total and will get an estimated return of around Rs 82 lakh 52 thousand. The total value is estimated to be around Rs 1 crore 6 lakh.
SIP of Rs 1000 with 10% step-up every year
If you invest Rs 1000 every month for 31 years with an average annual return rate of 12%, you will accumulate around Rs 1.02 crore. Out of this, your total invested amount will be around Rs 21.82 lakh, while the interest earned will be around Rs 80 lakh. Remember that this calculation assumes that you increase your SIP amount by 10 per cent every year.
SIP of Rs 2000 with 10% step-up every year
If you invest Rs 2000 every month with 10% step-up every year for 27 years with an average annual return rate of 12%, you will accumulate around Rs 1.14 crore. Your total invested amount will be around Rs 29 lakh, and the interest earned will be around Rs 86 lakh.
SIP of Rs 3000 with 10% increase every year
A SIP of Rs 3000 per month with 10% increase every year will take you to Rs 1.10 crore in 24 years. In this period, you invest a total of Rs 31.86 lakh and earn interest of Rs 78.61 lakh, taking the total amount to Rs 1.10 crore.
SIP of Rs 5000 with 10% step-up every year
If you invest Rs 5000 every month with 10% step-up every year at an average annual return rate of 12% for 21 years, you will accumulate around Rs 1.16 crore. Your total invested amount will be around Rs 38.40 lakh, while the interest amount will be Rs 77.96 lakh.
