From 10,000 monthly SIP to Rs 50 crore retirement corpus: How can you cover long distances when you have an appointment to keep? You start your journey early. You know that the event cannot be postponed and that if you start late, you will surely miss it. Or, if you start too late and make an extra effort to get to your destination on time, there is still a chance of missing the appointment.
Retirement planning is no different. It doesn’t require a quick, grueling process.
If you have a large dollar goal to reach and you start early and make consistent, regular investments, there is a good chance you will achieve your goal; however, it can be an uphill struggle.
So when we say that a monthly investment of Rs 10,000 can generate a retirement fund of Rs 50 crore, it is not impossible.
It requires a long and constant investment.
With this, even if your contribution is Rs 10,000 a month, the journey towards a Rs 5 crore retirement fund is not impossible.
Journey from a monthly investment of Rs 10,000 to a corpus of Rs 50 crore
We know our monthly contribution and retirement corpus here, but let us put some more conditions here.
We need to select an investment scheme, so let us select SIP investment in an equity mutual fund.
We expect an annualized return on the SIP of 12 percent, but we will also demonstrate what will happen if annualized returns on the SIP of 13 percent, 14 percent and 15 percent are achieved, respectively.
From Rs 10,000 monthly SIP to Rs 50 crore corpus with 12% growth
If you get an annualized return of 12 percent on a monthly SIP of Rs 10,000.
It will take a little over 34 years to achieve the target of Rs 50 crore.
In that condition, your investment in that period will be Rs 40,80,000, estimated long term capital gains will be Rs 4,50,09,863 and expected amount will be Rs 4,90,89,863.
However, if you stay in the investment for 1 more year, your expected amount will grow to Rs 5,51,08,311.
From Rs 10,000 monthly SIP to Rs 50 crore corpus with 13% growth
If you achieve 14 per cent annualised growth in your SIP investment, you can achieve the retirement corpus target of Rs 5 crore in just over 32 years.
In 33 years, your investment will be Rs 39,60,000, estimated long-term capital gains will be Rs 5,07,51,924 and expected amount will be Rs 5,47,11,924.
From Rs 10,000 monthly SIP to Rs 50 crore corpus with 14% growth
If your annualised SIP return is 14 per cent, it will take 31 years to reach the retirement corpus target of Rs 50 crore.
In 31 years, your investment will be Rs 37,20,000, estimated long-term capital gains will be Rs 4,88,44,593 and expected amount will be Rs 5,25,64,593.
From Rs 10,000 monthly SIP to Rs 50 crore corpus with 15% growth
If you get 15 annualised SIP returns on your monthly income of Rs 10,000, it will take you a little over 29 years to reach the retirement corpus target of Rs 5 crore.
In 30 years, your investment will be Rs 36,00,000, estimated long-term capital gains will be Rs 5,27,17,704 and expected amount will be Rs 5,63,17,704.
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