Can a Rs 10,000 monthly SIP build a Rs 1 crore corpus? Check how long it may take
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Wealth accumulation
Are you planning to invest Rs 10,000 to build Rs 1 crore target corpus? Here is how much time you will take to reach target corpus, according to the Wealth Conversations Report by FundsIndia.
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Key things to know before investing
Investors should first assess how much they can invest each month, whether they can increase their contributions through a step-up SIP, and the corpus they aim to build. These factors can help determine the time needed to reach the financial goal and whether the existing investment strategy is adequate to achieve the target.
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Fix monthly investment
One should always know how much amount they can invest monthly through mutual fund SIPs. Say if you can invest Rs 10,000 monthly to build your target corpus.
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Annual increase
The next thing one should know is if they can increase their monthly SIP amount annually or will continue with the same amount. In other words, one should decide if they want to do step-up SIP or not. Say one won't do any annual increase.
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Expected rate of return on investment
Assuming that your investments will grow at a rate of return of 12% per annum. It refers to the investment rate that one will anticipate from their investments.
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Time to reach desired corpus
According to the report, it will take around 20 years and 1 month to reach the target corpus with a monthly SIP of Rs 10,000 and no annual increase in SIP.
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If with 5% annual increase in SIP
If one can go with 5% annual increase in their SIP, then they can achieve this amount in 17 years and 10 months.
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If with 10% annual increase in SIP
If one can go with 10% annual increase in their SIP, then they can achieve this amount in 15 years and 10 months.