Can a Rs 30,000 mutual fund SIP help you build Rs 1 crore? Check the timeline

Are you planning to invest Rs 30,000 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.

Investors should first determine how much they can invest every month, whether they have an amount available for investment through step-up SIP, and the corpus they want to build. Based on these inputs, they can estimate the time required to reach their financial goal and assess whether their current investment plan is sufficient to achieve the desired target.

One should always know how much amount they can invest monthly through mutual fund SIPs. Say if you can invest Rs 30,000 monthly to build your target corpus.

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 wont do any annual increase.

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.

According to the report, it will take around 12 years and 4 months to reach the target corpus with a monthly SIP of Rs 30,000 and no annual increase in SIP.

If one can go with 5% annual increase in their SIP, then they can achieve this amount in 11 years.

If one can go with 10% annual increase in their SIP, then they can achieve this amount in 10 years.