Power of Compounding: How quickly can you build Rs 50 lakh corpus with just Rs 1,000, Rs 5,000, and Rs 9,000 monthly investments?

There is a mindset that if you have to indulge in investment, you must accumulate a sizeable amount to invest, but little do you know that even a small investment amount can make a big difference. For example, if you start your investment journey with a small amount of Rs 1,000 to Rs 9,000, you can end up creating a sizable corpus of Rs 50 lakh, and that too soon. The major factor to note here is investment strategy; with discipline and consistency, you can achieve your target goal with ease. Thus, explore the details below to find out how quickly you can generate Rs 50 lakh by investing monthly in a systematic investment plan.

Also read: How many years will it take to build Rs 90 lakh corpus with just Rs 4,000, Rs 6,000, and Rs 9,000 monthly investments?

Compounding helps you generate returns not only on the principal investment amount but also on the accumulated returns. It helps to grow your wealth in the long run. The secret to benefiting from compounding is to start early and stay consistent with your investment.

A systematic investment plan(SIP) allows investors to invest a fixed amount in mutual funds. As an investor, you can either invest daily, weekly, monthly, quarterly, or yearly, depending on your choice. Plus, you can start your investment journey with a small amount of Rs 100.

A systematic investment plan allows investors to invest a fixed amount regularly. You can set up a SIP with a mutual fund company and instruct them to deduct a fixed amount from your bank account at regular intervals.

It will take approximately 35 years to generate over Rs 50 lakh.

The investment amount will be Rs 4,20,000, the capital gains will be Rs 50,90,831, and the estimated retirement corpus will be Rs 55,10,831.

It will take approximately 21 years to generate Rs 50 lakh corpus.

The investment amount will be Rs 12,60,000, the capital gains will be Rs 39,55,034, and the estimated retirement corpus will be Rs 52,15,034.

It will take approximately 17 years to generate over Rs 50 lakh.

The investment amount will be Rs 18,36,000, the capital gains will be Rs 37,80,660, and the estimated retirement corpus will be Rs 56,16,660.

DISCLAIMER: Not financial advice; invest at your own risk

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