Power of Rs 9,000 SIP: Can you generate Rs 7 crore corpus with just Rs 9,000 monthly investment?

Growing a huge corpus with a small investment amount seems unlikely, but with a smart and consistent investment plan, it's possible. The power of compounding plays a crucial role in growing your investment in the long run. Another secret to success is starting early. When you invest early, your money has more time to grow. So, let's see how you can build a huge corpus with just Rs 9,000 invested every month in a systematic investment plan (SIP).

Introduction to SIP?

A systematic investment plan allows investors to invest a fixed amount in mutual funds. Investors can invest daily, weekly, monthly, quarterly, or yearly, depending on their choice. 

Why opt for SIP?

SIP is beginner-friendly, even a small investment of Rs 100 can build a sizeable corpus in the long run. It is also convenient, with automated deductions you don’t have to worry about missing out on investment.

Why should you start investing early?

To get maximum returns from investment in the long run one should start investing early. Let’s understand it through an example.

Example to understand why investing early can be beneficial in long run

Let’s understand it through an example.
Simran starts investing Rs 1,000 per month at age 20.
After 40 years, she gets an estimated Rs 1.18 crore.

Her friend, Riya, starts investing Rs 1,000 per month at age 30.
After 30 years, she gets Rs 35 lakh.

Simran started 10 years earlier and got 3 times more returns.

SIP calculations

 Target corpus: Rs 7 crore
Monthly investment: Rs 9,000
Annualised return: 12 per cent

How long it will take to build Rs 7 crore with Rs 9,000 monthly SIP

It will take approximately 38 years to generate Rs 7 crore.

How much can Rs 9,000 monthly SIP build in 10 years?

The investment amount will be Rs 10,80,000, the capital gains will be Rs 9,36,323, and the estimated retirement corpus will be Rs 20,16,323. 

How much can Rs 9,000 monthly SIP build in 20 years?

The investment amount will be Rs 21,60,000, the capital gains will be Rs 61,18,716, and the estimated retirement corpus will be Rs 82,78,716.

How much can Rs 9,000 monthly SIP build in 30 years?

The investment amount will be Rs 32,40,000, the capital gains will be Rs 2,44,88,759, and the estimated retirement corpus will be Rs 2,77,28,759.

How much can Rs 9,000 monthly SIP build in 38 years?

The investment amount will be Rs 41,04,000, the capital gains will be Rs 6,59,64,602, and the estimated retirement corpus will be Rs 7,00,68,602.

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)