How to become crorepati by SIP: You may get Rs 1 crore, Rs 5 crore and Rs 10 crore in 10, 15, 20 years by investing these amounts

Mutual Fund SIP: Want to become a crorepati? Investing in a Mutual Fund SIP may help in the long run. Though fraught with market risks, Mutual Fund SIPs come across as one of the most popular investment avenues.

How to become crorepati by SIP: You may get Rs 1 crore, Rs 5 crore and Rs 10 crore in 10, 15, 20 years by investing these amounts

Mutual Fund SIP: Want to become a crorepati? Investing in a Mutual Fund SIP may help in the long run. Though fraught with market risks, Mutual Fund SIPs come across as one of the most popular investment avenues promising a handsome return in the long run. As compared to government-backed savings schemes like Fixed Deposits and Public Provident Fund (PPF), a well-performing Mutual Fund generally gives a higher rate of return. Mutual Fund SIP lets an investor set aside a fixed amount of money at regular intervals (weekly, monthly, and quarterly) for capital appreciation in the longer run. Here's a look at what it may take to generate Rs 1 crore, Rs 5 crore and Rs 10 crore over a period of 10, 15 and 20 years through Mutual Fund SIP. You can also make such a calculation on online SIP calculators. 

But first, a few assumptions:

Let us assume that the average rate of return remains a moderate 12% per annum over the entire investment period. Secondly, you continue to make the investment regularly. 

ALSO READ | Public Provident Fund vs Mutual Fund SIP: What Rs 200 a day may become in 15, 20, 25, 30 years - Surprising numbers here

Rs 1 crore

SBI Mutual Fund calculator shows that a person would need to make a monthly investment of Rs 43,041/month for getting Rs 1 crore in 10 years. For this amount in 15 years, you will need to invest Rs 19,819/month and  Rs 10,009 in 20 years. 

Rs 5 crore 

The online calculator shows that a person would need to make a monthly investment of Rs 2,15,203/month for getting Rs 5 crore in 10 years. For this amount in 15 years, you will need to invest Rs 99,093/month and  Rs 50,043 in 20 years. 

Rs 10 crore

The online calculator shows that a person would need to make a monthly investment of Rs 4,30,405/month for getting Rs 10 crore in 10 years. For this amount in 15 years, you will need to invest Rs 1,98,186/month and  Rs 1,00,085 in 20 years. 

Watch this Zee Business News

Mutual Fund investments are subject to market risks. Hence, you should go through the details carefully before making an investment. You can also explore taking advice from a certified advisor to meet your financial needs. 

Written By: ZeeBiz WebTeam
Updated: Mon, Mar 18, 2019
12:21 PM IST
New Delhi, ZeeBiz WebDesk
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