Do you want to invest Rs 100,000 per month ?
Start a SIP in Equity Mutual Funds. Over the next 5 to 10 years you can create significant wealth.
Here is how much your money can grow at the rate of ~12% per annum if you invest Rs 100,000 per month.
- After year 5, you can have: Rs 85 lakhs
- After year 8. you can have: Rs 1.65 CRORES
If you continue doing this, you can have the following amounts in:
- Year 10: Rs 2.4 CRORES
- Year 15: Rs 5 CRORES
- Year 20: Rs 9.6 CRORES
- Year 25: Rs 18 CRORES
- Year 30: Rs 32 CRORES
- Year 35: Rs 58 CRORES
Imagine if you are a 25 year old who has the money and starts investing Rs 100,000 and continues to do it till you retire at the age of 60 – Your savings per month can grow from Rs 420 lakhs (100000 x 12 months x 35 years = Rs 420 lakhs) to Rs 58 crores over 35 years
That’s the magic of compounding and investing in the Equity asset class on a regular basis over a long term period.
Note: The 12% return is a conservative assumption as Equity as an asset class has given a return of 16 – 17% per annum over the last few decades. However, there is no guarantee that it will grow at such rates hence the 12% assumption.