How to become rich: Your ₹5000 monthly SIP can help you grow ₹5.22 crore (2024)

FAQs

Which SIP is best for $5000 per month? ›

If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.

it helps in creating a higher corpus as illustrated below. If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

If you continue with your investments for a long time, you can easily become a crorepati. In 26 years, you can accumulate a Rs 1 crore corpus if you begin investing Rs 5,000 per month in mutual fund SIP. Here the interest rate, let's assume, remains constant at 12 per cent per annum.

If you invest Rs 1000 for 20 years , if we assume 12 % return , you would get Approx Rs 9.2 lakhs. Invested amount Rs 2.4 Lakh.

Value of INR 20,000 per Month in SIP

If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.

Even with higher returns, an incremental investment of Rs 25,000 per month (monthly SIP of Rs 60,000) will be required. However, if you continue to invest for 15 years, providing more time for compounding, you can amass around Rs 2.2 crore with your original investment.

If your goal is to create a corpus of ₹5 Cr in 20 years, investing in mutual funds through a systematic investment plan (SIP) can be a smart and effective way to achieve your financial goals. To achieve a corpus of ₹5 Cr in 20 years, you would need to invest approximately ₹1,50,000 per month through a SIP.

How to make 5 cr? ›

The Rs 5 crore target can be achieved in 24 years. As equities tend to provide higher returns over the long term, you can consider investing through a Systematic Investment Plan or SIP in large-cap funds to generate a return of around 12%.

Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.

For instance, by initiating a monthly SIP of approximately ₹5,000 and maintaining an annual SIP step-up of 15 percent, coupled with a 15 percent annual mutual fund return, investors could potentially accumulate around ₹5.22 crore over 25 years.

Equity Linked Saving Scheme (ELSS) funds are tailored to provide tax benefits under Section 80C of the Income Tax Act, with a lock-in period of 3 years. The DSP ELSS Tax Saver Fund exemplifies a compelling option for investing an SIP of 2000 for 10 years or more.

There are eight large cap mutual funds which have delivered over 40 percent return in the past one year. These include Quant Large Cap Fund, Bank of India Bluechip Fund, JM Large Cap Fund and Nippon India Large Cap Fund, among others.

To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.

While you get your next Rs 16 lakh return in just four years (total 12 years), and similarly, the next Rs 16 lakh return in just three years. At the end of the 20th year of your investment, your corpus will reach around Rs 1 crore.