Mutual fund calculator: ₹10,000 monthly SIP can make you a crorepati (2024)

FAQs

What if I invest $10,000 in SIP per month? ›

With the help of compounding, your monthly investment of 10000 can help you accumulate Rs 1 crore, Rs 1.9 crore, and Rs 3.5 crore in 20, 25, and 30 years, respectively, even if you manage to get 12 per cent annualised returns from your mutual fund investments.

Thus, assuming an annualised returns of 7 per cent from debt funds, an investor would need to invest Rs 1.40 lakh per month through SIP to create a corpus of Rs 1 crore in 5 years.

Overall, this illustrates that consistent monthly investments (SIP) in these small-cap funds for 10 years have the potential to create significant wealth, turning investors into crorepatis.

Ideal SIP to amass ₹5 crore if you are 35 years old

According to the Upstox SIP calculator, a 35-year-old would need to invest ₹27,000 per month for the next 25 years to build a corpus of ₹5 crore by the age of 60, assuming a 12 per cent annual rate of return and monthly compounding.

For example, if an individual plan to accumulate ₹50 lakhs over the tenure of 5 years, assuming the individual invests in a Flexicap fund or a Multicap fund which is giving an annualized return of 15%, then the individual needs to invest ₹55,750 per month for 5 years in order to generate the required corpus.

Utilising the SIP calculator, an investment of Rs 15,000 monthly over a duration of 15 years results in a total capital outlay of Rs 27,00,000. Assuming an annual return of 15%, the projected long-term capital gains are estimated to be Rs 74,52,946. After 15 years, you will get a total of Rs 1,01,52,946.

Calculation of SIP returns

To understand this, let us take an example. A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh.

The three toppers in the list were from one fund house - Quant Mutual Fund. Quant Small Cap Fund, Quant Mid Cap Fund, and Quant ELSS Tax Saver Fund gave 37.30%, 31.84%, and 30.37% returns, respectively on SIP investments in the last seven years.

If you can invest Rs 5,000 per month, you can save Rs 1 crore in a little more than 26 years (317 months) at 12% interest rate.

So, can INR 5 crore suffice? Let's consider a scenario where you retire at 60, live up to 85, and maintain a simple lifestyle in a tier 2 city. With an initial withdrawal rate of 4% per year, which adjusts annually with inflation, you'd have approximately INR 20 lakh per year or INR 1.67 lakh per month.

Which bank SIP is best? ›

Although a SIP is safe, it is not entirely risk-free. So, before you start a SIP in the mutual fund of your choice, you need to be aware of the risks involved. Do note that most of the risks listed below are not entirely tied to the SIP itself, but often stem from the mutual fund schemes or the market in general.

How much should I invest every month in a systematic investment plan (SIP)? You must strive to save at least 30% of your gross income or ₹60,000 every month.

How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.

Take for example you want to invest Rs. 1,000 per month for 12 months at a periodic rate of interest of 12%. which gives Rs 12,809 Rs approximately in a year. The rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.

Value of INR 20,000 per Month in SIP

If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.