Power of Rs 1000 Monthly SIP: Planning for a secure and comfortable retirement can seem daunting, especially when you consider inflation and rising costs of living. However, what if you could build a substantial retirement fund with a small monthly commitment? Imagine turning a modest monthly investment of Rs 1,000 into a fortune of Rs 10 crore by the time you retire. This is possible with the powerful power of the Systematic Investment Plan (SIP). Find out how starting with as little as Rs 1,000 a month can lead you to financial freedom and freedom from worry.
Although SIPs are linked to market performance, they tend to offer better returns over the long term compared to most other investment options.
How to build a corpus of Rs 10 crore with a monthly SIP of Rs 1000: Calculation
To accumulate a capital of Rs 100 crore with just Rs 1000 per month of initial investment, it is important to start investing as early as possible. Planning ahead allows your money more time to grow.
For example, if you start investing Rs 1,000 in a SIP at the age of 20, by the time you turn 60, you could have a capital of at least Rs 10 crore. Learn how, with complete calculations:
Suppose you invest Rs 1,000 per month in a SIP for 40 years at an average rate of return of 12% per annum. Over these 40 years, you will have invested a total of Rs 4,80,000. The estimated return on this investment will be Rs 11,402,420, taking your total wealth to Rs 11,882,420.
- Amount invested: Rs 4,80,000
- Estimated profitability: Rs 1,14,02,420
- Total value: Rs 1,18,82,420
The power of capitalization
Investing in mutual funds through SIPs is generally less risky than buying stocks directly. With average returns of around 12%, SIPs tend to outperform most government schemes. Also, the power of compounding helps your money grow significantly over time, making long-term SIPs an excellent strategy for wealth creation.
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