Published: 23rd July 2024
By: Value Research
This is not a marketing gimmick. Systematic investment plans (SIPs) help you invest a fixed amount at regular intervals, usually monthly, to build a Rs 1 crore corpus.
If your investment grows 12% annually over 10 years, you’d need to start a monthly SIP of Rs 44,700 to build Rs 1 crore. If your investment returns 10% annually over 10 years, you need to start a monthly SIP of Rs 49,700.
If you are a beginner, you can look to start your SIP in an aggressive hybrid fund. If you have some experience in equity investing, we suggest looking at diversified mutual funds such as flexi-cap funds and multi-cap funds.
Worry not. You can start your SIP journey with Rs 20,400 each month, too. But you’ll need to increase your SIP amount 20% each year to touch the Rs 1 crore mark in 10 years. This is applicable if the investment grows 12% annually.
If increasing your SIP amount by 20% each year sounds unreasonable, we have prepared a table for 5%, 10% and 15% SIP step-ups, too. To view that table, we suggest you click below for the full story: