Can a Rs 30,000 mutual fund SIP help you build Rs 5 crore? Check the timeline
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Wealth accumulation
Are you planning to invest Rs 30,000 to build a Rs 5 crore target corpus? Here is how much time you will take to reach the target corpus, according to the Wealth Conversations Report by FundsIndia.
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Key things to know before investing
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.
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Monthly investment amount
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.
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Annual increaseAnnual 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 will not do any annual increase.
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Expected rate of return
Assuming that your investments will grow at a rate of return of 12% per annum, this refers to the investment return that one anticipates from their investments.
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Time to reach your target corpus
According to the report, it will take around 24 years to reach the target corpus with a monthly SIP of Rs 30,000 and no annual increase in SIP.
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If with 5% annual increase in SIP
If one can go with a 5% annual increase in their SIP, then they can achieve this amount in 21 years and five months.
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If with 10% annual increase in SIP
If one can go with a 10% annual increase in their SIP, then they can achieve this amount in 18 years and 11 months.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)