New Delhi: Building a solid retirement fund or long-term wealth is a goal many investors strive for and Systematic Investment Plans (SIPs) have become a go-to strategy to make that goal achievable. One question that often comes up, especially among beginners, is: How long would it take to build a Rs 5 crore corpus by investing Rs 10,000 every month? Let’s break it down and see what it really takes.
Getting Started: The Basics of Planning
Before you begin your investment journey, it’s important to be clear about a few key things:
Add Zee News as a Preferred Source
– How much you’ll invest each month
– What your final goal or target amount is
– Whether you’ll be adding any lump sum along with your monthly SIPs
These three factors play a major role in deciding how long it will take to reach your financial goal.
Expected Rate of Return
Let’s assume your investments grow at an annual return of 12 per cent. This means you expect your money to earn 12 per cent each year over time. The rate of return is simply the percentage of growth you anticipate from your investments, and it plays a key role in how quickly you can reach your financial goals. (Also Read: Personal Income Tax Collection Overtakes Corporate Tax: Report)
How Long Will It Take to Reach Rs 5 Crore?
According to Value Research’s SIP calculator, if you invest Rs 10,000 every month with an expected return of 12 per cent per year, it would take around 34 years and 2 months to build a corpus of Rs 5 crore. Yes, it’s a long journey—but it clearly shows the power of compounding and the importance of staying consistent and patient when it comes to building long-term wealth.
Total Corpus: What You’ll Actually Invest
To reach your Rs 5 crore goal, you’ll need to invest consistently for 34 years and 2 months. Over this period, your total investment will be around Rs 2 crore—the rest comes from the power of compounding. (Also Read: Hurry! Indian Bank And IDBI Bank Special FDs Offering Up To 7.45% Interest, The Deadline Is…)
While the timeline may feel long, it highlights just how important discipline and consistency are in investing. Even with a modest monthly amount like Rs 10,000, sticking with your SIPs can help you hit big financial goals. If you’re aiming for something as large as Rs 5 crore, patience and steady investing are your strongest allies.
Leave a Reply