Invest Rs 7,000 Monthly, Retire With Rs 1 Crore. Here's How
If an investor commits Rs 7,000 every month to a SIP and earns an assumed annual return of 12%, he could amass Rs 1 crore in about 22 years
Planning for a secure financial future often comes down to discipline and smart use of compounding. Financial experts say that a small but consistent investment can grow into a substantial corpus if given enough time, and a Rs 7,000 monthly Systematic Investment Plan (SIP) in equity mutual funds is a clear example.
If an investor commits Rs 7,000 every month to a SIP and earns an assumed annual return of 12%, a figure based on historical performance of equity mutual funds, they could amass Rs 1 crore in about 22 years.
The Numbers Behind Rs 1 Crore
The secret lies in compounding, often described as 'interest on interest". As your returns begin generating their own returns, growth accelerates, particularly over longer investment horizons. Starting early amplifies this effect. For instance, beginning at 25 could get you to Rs 1 crore by age 47, while starting at 35 would push the milestone to age 57.
While these projections are encouraging, market volatility means actual results may vary. Financial planners recommend diversifying investments across asset classes and reviewing portfolios periodically to stay aligned with evolving goals and market conditions.
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