Sunday, July 14, 2024

SIP Calculator: How much SIP you need to do every month to become a millionaire in 10 years?

SIP Calculator: It is everyone’s dream to become a millionaire. If you also want that after 10 years you have a fund of Rs 1 crore, then it is necessary to start investing from today itself. Financial experts say that when you get on the investment vehicle, it is most important that the investment vehicle should always be running. In the long term, the speed of the vehicle becomes less important. This is the reason why SIP is considered the most effective tool for investment. It makes the investment vehicle move at a uniform speed irrespective of the volatility of the market.

Keep in mind inflation and d-valuation of rupee

While planning for long term investment, it is important to keep two things in mind. First rising inflation and second fall in the value of rupee. SIP reduces the effect of both these factors. The return received every year in the power of compounding acts as the principal amount. For this reason, you get multibagger returns in the long term. Let us know how much SIP will have to be done every month to become a millionaire in 10 years.

Create a fund of Rs 1 crore in 10 years

The SIP amount to create a fund of 1 crore in 10 years depends on the return you are getting. If the average return of the scheme in which you invest is 8%, then a SIP of Rs 542999 will have to be done every month. By the way, mutual fund schemes give 12-15% returns in the long term.

How much SIP will have to be done for 10-25% return?

If the annual average return is 10%, then a SIP of Rs 48414 will have to be done every month. On getting an average return of 15%, Rs 35,887 will have to be deposited every month. On the other hand, if the return received is 25%, then SIP of only Rs 18,769 will have to be done every month.

How many SIPs are required to become a millionaire in 15 years?

If this amount seems too much for you, then the investment period can be done for 15 years. In this situation, the SIP amount at 8% return will be Rs 28,708. On getting 10% return, SIP will be Rs 23928. On getting a return of 15%, the SIP will be Rs 14,775. If your scheme is getting 25% return every year, then SIP will be only Rs 5114.

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