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Power of Compounding: If you feel your hard-earned money often goes into unnecessary expenses and you wish to build long-term wealth, here’s a smart investment option for you.

By investing a fixed amount every month, you can slowly build a substantial corpus to meet your future financial goals.

It's a long term investment, where you invest an amount every month, on this principal amount an interest is generated every month, based on the time you selected and interest rate.

Lets understand with an example

Suppose you are investing some amount monthly in a SIP mutual fund. Assuming an average return rate of 12 per cent, your target is to generate over Rs 4.1 crore corpus in the long term. Now, can you guess how much amount you have to invest monthly? Let's calculate and find.

Total amount to invest in SIP for generating Rs 4.1 crore:

According to the calculations, you will need to invest Rs 15,000 in SIP for at least 29 years to generate over Rs 4.1 crore corpus with expected return rate per annum will be 12 per cent.

In terms of capital gain, a total of Rs 3,58,72,054 corpus will be received. It should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.

So, at the end of 29 years, including the principal investment and capital gain, you will get a total of Rs 4,10,92,054.

With an SIP investment of 15000 rupees per month, you can earn Rs 4.1 crore rupees after 29 years.

(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)

Akanksha is a writer who covers personal finance and commodities, with prior experience in cryptocurrency reporting. She has also covered political elections a