SIP Calculation 10 years: 5 Small Cap Funds turned Rs 5,000/month into a corpus of Over Rs 25 lakh! (2024)

FAQs

What if I invest $5,000 a month in SIP for 10 years? ›

The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 30.5 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 28.6 lakh in 10 years.

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.

So, assuming an investor invests ₹10,000 per month for 15 years, maintaining 10 per cent annual step up, mutual funds SIP calculator suggests that one's SIP of ₹10,000 would yield ₹1,03,11,841 or ₹1.03 crore.

Given that performance, if one would started investing Rs 20,000 monthly through SIP in this fund 10 years ago, they would have got Rs 1.01 crore with capital gains of Rs 77.18 lakh. The expense ratio of the scheme is 0.77 per cent against the category average of 0.62 per cent.

Monthly Investment to Make 1 Crore in 10 Years

Similarly, the investor may invest INR 40,200 to get a 14% annual return to make a sum of INR 1,00,18,755 in the span of 10 years. The investor can invest INR 42,400 to get an annual interest of 13% to make INR 1,00,17,070 in 10 years.

Assuming an annual rate of return of 10%, the total investment made over the 15-year period would be 9 lakhs (5,000 x 12 x 15). With the power of compounding, the investment can potentially grow to 21.8 lakhs, with a total gain of 12.8 lakhs. This means that the investment has more than doubled over the 15-year period.

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.

SIP falls under the EEE (Exempt, Exempt, Exempt) category for Equity Linked Saving Schemes (ELSS). The amount invested, the amount received at maturity, and the amount of the withdrawal are all tax-free. One may deduct up to Rs. 1,50,000 annually using SIP in an ELSS fund.

If the SIP was maintained, this would be the case. With a monthly investment of ₹40,000 in a mutual fund plan, the sum would reach ₹1 crore after 10 years and 6 months. According to the findings of Value Research, large-cap funds achieved an average return on investment of 13.36% during ten years.

What if I invest 30 000 a month in SIP for 5 years? ›

If you invest ₹30,000 per month in a Systematic Investment Plan (SIP) for a period of 5 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹18,00,000. Estimated Returns will be will be: ₹6,74,591.

It has given 25.96 % annualised returns in ten years. The calculator shows that a monthly SIP of ₹10,000 in this fund could have grown to approx. ₹57,53,702 in ten years. The mutual fund calculator shows how a lumpsum investment of 1 lakh grew more than five times in ten years.

it helps in creating a higher corpus as illustrated below. If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

Now, let's consider how our calculations change if the time horizon is 10 years. If you are starting from scratch, you will need to invest about $4,757 at the end of every month for 10 years. Suppose you already have $100,000. Then you will only need $3,390 at the end of every month to become a millionaire in 10 years.

Calculation of SIP returns

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 gains made by you in this scenario will be approximately Rs 5.61 lakh (Rs 11.61 lakh minus 5000*10*12).

SIPs (Systematic Investment Plans) are excellent choices and cater to short- and long-term objectives. With just Rs. 5000 per month, SIPs pave the way for disciplined investing and unlock the potential for compounded returns.

If you invest ₹5,000 per month in a Systematic Investment Plan (SIP) for a period of 10 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹6,00,000. Estimated Returns will be will be: ₹5,61,695.