SIP Investment Tips: How much money should be invested in SIP every month to become a millionaire in 5 years and 10 years?

SIP Investment Tips: If you're dreaming of becoming a millionaire in 5 or 10 years, it's not difficult. A mutual fund's SIP (Systematic Investment Plan) can help you build a substantial corpus by making small savings. All it takes is a little patience and proper planning. Now, if you're wondering how much money you need to invest each month to create a corpus of over Rs 1 crore in 10 or 15 years, you'll need to understand a simple calculation.

How much should you invest each month in a SIP to become a crorepati in 5 years?

The biggest magic of SIP is compounding. This means you earn interest on the money you invest, and then interest on that interest. This allows your corpus to grow. Even if you don't have a lot of money in your pocket, you can start with Rs 2,000 or Rs 5,000 per month.

Accumulating Rs 1 crore in 5 years isn't too difficult. Assuming a 12% annual return, you'll need to invest approximately ₹1,25,000 in a monthly SIP. This amount could reach approximately ₹1,01,37,952 in 5 years at a 12% return. This means that by earning slightly higher returns (13-14%) or investing a little more, such as ₹1,30,000 per month, you can achieve your target of ₹1 crore in 5 years. However, investing such a large amount every month isn't everyone's cup of tea. A good income and the right fund selection are essential.

How to make ₹1 crore in 10 years?

You want a fund worth more than ₹1 crore in 10 years. This requires a significant monthly investment. If you invest ₹50,000 every month in a SIP and earn an average return of 12%, you'll have over ₹1,12,01,794 after 10 years. Now, this is slightly less than Rs 1 crore, but if the return is more than 12%, such as 13-14%, then even Rs 50,000 per month can create a fund worth Rs 1,18,15,556.

Now, if you take a 15-year timeframe, things get even easier. A large fund can be created with a small investment. Suppose you invest Rs 25,000 every month in a SIP. If you get an average return of 12%, then after 15 years, you will have a fund worth Rs 1,18,98,285.

I'm noting that the 12% return is because most good mutual funds can deliver this much over the long term. However, this depends on the fund selection. Choosing a good fund requires some research or consulting a financial advisor. Yes, the sooner you start investing, the greater the benefits. Investing early means compounding has more time, and your money will grow faster.

Imagine if you start a SIP today, you could not only become a millionaire in 10-15 years, but also achieve financial freedom. But remember, mutual funds carry risk. The market fluctuates. So, choose the right fund, stay invested for the long term, and invest regularly every month.

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