When your returns overtake your own money
For the first 10 years, the money you put in is bigger than the growth. At year 10 you have invested ₹3,60,000 against estimated returns of ₹3,37,017. Somewhere between year 10 and year 15 that flips. By year 15 the returns, ₹9,73,728, are clearly larger than your ₹5,40,000. By year 25 they are more than five times it. Stop a ₹3,000 SIP before this point and you leave just before growth starts doing most of the work.
Frequently asked questions
How much will ₹3,000 SIP give in 20 years?
About ₹29,97,444 at an assumed 12% a year, close to ₹30 lakh. You invest ₹7,20,000 and around ₹22,77,444 is estimated returns. Returns are not guaranteed.
What will ₹3,000 a month become in 5 years?
Roughly ₹2,47,459 at 12% a year, from ₹1,80,000 invested. Five years is short for equity, so a weak market near the end could pull this down noticeably.
How much does a 10% yearly step-up add to ₹3,000 SIP?
Over 15 years the estimate goes from ₹15,13,728 to about ₹26,05,155. You invest about ₹11,43,809 in total, and in the 15th year the SIP is about ₹11,393 a month.
Is ₹3,000 SIP good for a 25-year goal?
It can build a sizeable amount. At 12% a year, 25 years of ₹3,000 a month is estimated at ₹56,92,905, from ₹9,00,000 invested. Review it every few years and raise the SIP when you can.
