Turn ₹7,000 per Month into ₹1 Crore – SIP Formula Explained
A SIP of just ₹7,000 per month can create a corpus of ₹1 crore, Know the calculation: If you want to build a corpus of ₹1 crore in the future, start planning now. By starting at the right time and using regular investments and compounding interest effectively, investors can quickly build a corpus of ₹1 crore in a short period of time. Most experts believe that regular investments and long-term investments can easily build a large corpus. A monthly equity mutual fund SIP of ₹7,000 can help.
SIP: Suppose an investor makes a ₹7,000 SIP every month and earns an average annual return of 12%. This interest rate is based on the performance of equity mutual funds. Thus, their corpus could reach ₹1 crore in approximately 22 years.
How will the target of Rs 1 crore be achieved?
Monthly SIP-7,000
Total Investment: ₹18.48 lakh
Estimated Return: ₹81.52 lakh
SIP Total Fund: ₹1 crore (approximately $10 million) will be available based on compound interest. Your fund grows rapidly over time due to compounding. The earlier you start, the greater the benefit. For example, if you start at 25, you can build a fund of ₹1 crore (approximately $10 million) by 47, but if you start at 35, you will achieve this target by 57.
Increasing the SIP amount will reduce the time horizon:
-₹10,000 monthly SIP: ₹1 crore in 17 years
-₹15,000 monthly SIP: ₹1 crore in 12 years
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