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SIP investment: With research, planning, and strategic investing, anyone can build a substantial corpus and make their post-retirement life financially secure. There are many options available in the market for short-term and long-term investments. If you are looking for an investment option, mutual funds may be a good choice for you. It is a market-linked, long-term investment that earns interest on interest using the power of compound interest. Investors can invest small amounts from time to time instead of a lump sum amount.

But how does it work? How much money does one need to invest? Let's understand with an example -

Suppose you want to build a corpus of around Rs 1 crore by investing in SIP mutual funds. Assuming an average annual return rate of 12 per cent, you are investing for 10 years to build this corpus.

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Now, can you guess how much money you would need to invest in SIP every month? Let’s calculate and find out –

According to the calculations, to build a corpus of over Rs 1 crore, you would need to invest at least Rs 44,640 in SIP every month for 10 years.

In these 10 years, you will invest a total of Rs 53,56,800.

In terms of capital gain, a total of Rs 46,44,162 will be received. It should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.

As a result, at the end of 10 years, including the principal investment and capital gains, you can reach your target of Rs 1,00,00,962.

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

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Priya Vishwakarma, Sub Editor – Zee Business Digital

Priya Vishwakarma is a digital media journalist with over 3.5 years of experience. Currently the Sub Editor at Zee Business Digital, ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.