InvestorQ : I want Rs 9.5 crores of capital in my retirement my retirement year Will be 2049. Now I am invest Rs 13500 SIP per month. And till now I invested Rs150000 in lumpsum . give me answer as soon as possible
nityananda Ghosh made post
Mutual Funds

I want Rs 9.5 crores of capital in my retirement my retirement year Will be 2049. Now I am invest Rs 13500 SIP per month. And till now I invested Rs150000 in lumpsum . give me answer as soon as possible

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Anushri Vasa answered.
4 years ago
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Most of us know that SIP is an investment aid and it helps in getting tax benefits, but a few of us know what exactly SIP is and how does it work.

What is SIP?
It is a Systematic Investment Plan which allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme.

How does it work?
Under this, you are allocated certain units based on on-going market rate called NAV or Net Asset Value for the day. Every time your SIP is deducted, you’re allotted additional units according to your scheme. Hence units are bought at different rates and investors get benefits of Rupee-Cost Averaging and Power of Compounding.

How does Compounding work?
Compounding effect makes sure that you earn returns not only on your principal amount (actual investment) but also on the gains on the principal amount, which means your money grows over time as the money you invest returns and the returns also earn returns. So, in your case, since you are investing Rs 13500/ pm which is Rs 162000/ a year, which on an average would generate Rs 8700 as interest, which would reach up to 5 crores in next 30 years. Now, to be able to achieve your target, you need to take the maximum benefit of compounding, Beginning with Rs 13500 per years and increasing your SIP amount by Rs 4000/pm every year can help you achieve the desired target.

I am sharing an illustration of how this could work for you:
As you can see, if you increase the investment by Rs 48000/- per year, your total sum would reach Rs. 9,61,45,383/- in next 30 years. This is the minimum estimated amount one can receive and investment in SIP does not guarantee the same, as there are several other factors that drive the market, so this chart is prepared to keep all other factors constant, which in reality could change-over-time and affect your investment. Though Equity is the best option to invest, one can also opt for Insurance and regular investment in stocks (this one is risky though).


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