Retirement Plans via SIP: How much do you need to invest in mutual funds monthly for 10 years to create a corpus of Rs 1 crore?
SIP Investment: Through research, planning and strategic investments, anyone can build a large corpus and secure a life after retirement financially. There are many options in the short-term and long-term investment market. If you are looking for investment options, mutual funds may be a good choice for you. This is a long-term investment linked to the market, using the power of compound equity to earn interest. Investors can invest in small amounts from time to time, rather than one-time payments.
But how does it work? How much does a person need to invest? Let’s understand it with an example –
Suppose you want to build a corpus of about Rs 1 crore by investing in SIP mutual funds. Assuming an average annual rate of return of 12%, you will invest 10 years to build this corpus.
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Now, can you guess how much money you need to invest every month? Let’s calculate and find out –
What is the monthly SIP required to retire with Rs 1 crore?
According to the calculation, to build a corpus of over Rs 1 crore you need to invest at least Rs 44,640 per month for 10 years.
How to invest in SIP: Calculate total investment
In these 10 years, you will invest a total of Rs 53,56,800.
SIP plans to create a retirement corpus of Rs 1 crore: Calculate average capital gains
In terms of capital gains, a total of Rs 46,44,162 will be received. It should be noted that this is the expected return and the actual amount may vary depending on market conditions.
Long-term investment options: Final Corpus Received
As a result, at the end of the 10-year period, including major investments and capital gains, you can reach your target of Rs 1,00,00,962.
Complete calculation: 10 years later, you may become the owner of Rs 1 crore
- Total investment amount: Rs 53,56,800
- Capital gains: Rs 46,44,162
- Total return: Rs 1,00,00,962
(Disclaimer: Our calculations are forecasts, not investment advice. Do due diligence or consult a specialist for financial planning.)
