SIP for Rs 1 crore (calculation): Investing in mutual funds through Systematic Investment Plan (SIP) is believed to be an effective way to generate wealth over the long term. But there are certain risks that investors should know before investing even as several mutual fund schemes have given very high returns on investments of 5, 10 and more years.
SIP brings discipline to the investment journey of an investor. With the help of SIP, investors can invest a fixed part of their income on a monthly, weekly, bi-monthly, quarterly, half-yearly or yearly basis in a disciplined way.
This article looks at how much time and investment it will take to generate a wealth of Rs 1 crore from a monthly SIP investment, assuming 12% annual returns, as per FundsIndia’s ‘Wealth Conversations Report’ for April 2023.
Rs 10,000 SIP: Monthly SIP of Rs 10,000 will help you reach Rs 1 crore in 20 years and 1 month at 12% CAGR.
Rs 20,000 SIP: Monthly SIP of Rs 20,000 will help you reach Rs 1 crore in 15 years at 12% CAGR.
Also Read: SIP for Rs 30 lakh: Know how much monthly investment and time may be required
Rs 25,000 SIP: Monthly SIP of Rs 25,000 will help you reach Rs 1 crore in 13 years and 5 months at 12% CAGR.
Rs 30,000 SIP: Monthly SIP of Rs 30,000 will help you reach Rs 1 crore in 12 years and 4 months at 12% CAGR.
Rs 40,000 SIP: Monthly SIP of Rs 40,000 will help you reach Rs 1 crore in 10 years and 6 months at 12% CAGR.
Rs 50,000 SIP: Monthly SIP of Rs 50,000 will help you reach Rs 1 crore in 9 years and 2 months at 12% CAGR.
Also Read: Disadvantages of Mutual Fund investment for senior citizens and advantages – Explained
Rs 75,000 SIP: Monthly SIP of Rs 75,000 will help you reach Rs 1 crore in 7 years and 1 month at 12% CAGR.
Rs 1 Lakh SIP: Monthly SIP of Rs 1 lakh will help you reach Rs 1 crore in 5 years and 10 months at 12% CAGR.
(Disclaimer: The above content is for information purposes only. There is no assurance or guarantee that a mutual fund scheme will give 12% annual returns in future. Please consult your financial advisor before investing)