An individual can earn Rs 1 crore in less than two decades by simply investing Rs 10,000 monthly in a good systematic investment plan (SIP). Investing early and in a disciplined manner will help individuals in achieving their financial goals in the future.
According to SIP calculator, if a person invests Rs 10,000 every month for 10 years (120 months) in an SIP, the investor will end up shelling out Rs 12 lakh from his pocket.
But when the expected 15 percent annual equity returns is added to this amount, it will become around Rs 28 lakh. This will grow further to Rs 40.4 lakh in the 12th year and Rs 67.7 lakh in the 15th year. In just 18 years, the monthly investment of Rs 10,000 will amount to Rs 1.1 crore.
What makes the investment much more lucrative is the fact that the investment amount may look substantial at the beginning, but won’t be the case in the future. In other words, pay rise over the years will make the Rs 10,000 monthly investment only a small dent in a person’s monthly income.
First Published: IST