In order to accumulate Rs 1 crore, you may need to invest Rs 30,000 every month for 10 years in a step-up SIP at an assumed interest rate of 12% per annum. Under the step-up feature, investments need to be increased by 10% every year.
Here’s how your investment could grow:
Total Value: Rs 1,01,23,001
Invested Amount: Rs 57,37,488
Estimated Returns: 43,85,513
Tenure: 10 years
Step-up: 10% per annum
Interest Rate: 12% per annum
Monthly Investment: Rs 30,000
Let’s see how your SIP investments will grow in the same scenario without the step-up feature.
Building Rs 1 crore through SIP: A monthly investment of Rs 30,000 in SIP without a step-up feature could grow to nearly Rs 70 lakh in 10 years at an estimated return of 12% per annum.
Total Value: Rs 69,70,172
Invested Amount: Rs 36,00,000
Estimated Returns: Rs 33,70,172
Tenure: 10 years
Interest Rate: 12% per annum
Monthly Investment: Rs 30,000
In order to achieve the target of Rs 1 crore with the same investment, you may need to increase the tenure to more than 12 years.
The monthly SIP of Rs 30,000 is likely to grow to Rs 96,67,565 over 12 years at the same interest rate. Similarly, you may need to increase your monthly amount to Rs 45,000 to reach a corpus of Rs 1 crore in 10 years.
