Retirement Planning: See how your monthly SIP investment of Rs 20,000 will grow over 20 years at rates of return of 12%, 13%, 14% and 15%.
Retirement Planning: It’s never too late to start planning for your retirement. You can start building your post-retirement corpus whenever you choose. The key is to make a plan and start saving for your retirement. By doing so, you ensure that, in your old age, you will not have to rely on anyone else for your daily expenses.
Confused About Where To Invest?
If you want to build a large corpus during your retirement, there are many investment options available. One of the most popular and effective is the mutual fund SIP (Systematic Investment Plan). By regularly investing a portion of your income in SIP, you can increase your wealth and become a crorepati over time.
Retirement Planning: How Much Money Can You Build With Monthly SIP Investment of Rs 20K Over 20 Years?
If you are planning to build your retirement corpus with a monthly SIP of Rs 20,000, it is important to approach this strategically. The amount of money you can accumulate depends on the average annual return you receive. It is important to understand that SIPs are linked to the market, so returns are not guaranteed. An annual return of 12% is the average return for equity funds, and actual returns may vary depending on market conditions. In this article, we will calculate returns at 12 percent, 13 percent, 14 percent, and 15 percent annual rates.
Let’s assume you invest Rs 20,000 every month in SIP for 20 years. According to SIP calculation, your total investment in 20 years will be Rs 48,00,000. Now, let’s calculate the capital gains and the total amount received for 12 percent, 13 percent, 14 percent, and 15 percent annual returns:
How much money can you build with a monthly SIP investment of Rs 20K: If the annual return is 12%
With an annual return of 12 percent, the estimated capital gain would be around Rs 1,51,82,958. Adding the initial investment to this capital gain, your total investment can grow to around Rs 1,99,82,958 in 20 years.
Also Read: How your child can have more than Rs 1.13 crore by 21 years if you invest Rs 10,000 every month in SIP
How much money can you build with a monthly SIP investment of Rs 20K: If the annual return is 13%
With an annual return of 13 percent, the estimated capital gain would be around Rs 1,81,10,383. Adding the initial investment to this huge profit, your total investment can grow to around Rs 2,29,10,383 in 20 years.
How much money can you build with a monthly SIP investment of Rs 20K: If the annual return is 14%
With an annual return of 14 percent, the estimated capital gain would be around Rs 2,15,26,926. In 20 years, your investment can grow to around Rs 2,63,26,926.
How much money can you build with a monthly SIP investment of Rs 20K: If the annual return is 15%
With an annual return of 15 percent, the estimated capital gain would be around Rs 2,55,19,099. In 20 years, your investment can grow to around Rs 3,03,19,099.
Benefits of SIP
Despite the market risks, SIP is often considered a good option for wealth creation because it benefits from rupee cost parity, which helps minimize losses. However, keep in mind the inherent risks of investing in SIP and plan accordingly.
(Disclaimer: Our calculations are estimates and not investment advice. Do your own determination or consult a professional for financial planning)
