Mutual Funds are recognised as one of the best investment options to achieve financial goals fast. Though there are market-related risks involved in mutual fund investment, the experience of the last two decades shows that many investors have been able to multiply their wealth by remaining invested in good funds for the long term.
Experts suggest that the key to making the most from mutual funds is starting earlier. For instance, a calculation in FundsIndia’s Wealth Conversations Report December 2022 shows that you may need a monthly SIP of Rs 8416 only to get Rs 10 crore on retirement, assuming 12% returns per annum, if you start investing from the age of 20. That said, here’s a look at how much amount you need to invest to get Rs 10 crore from mutual funds and how many years and months it will take, assuming 12% returns.
Rs 10,000 SIP: It would take 38 years and 7 months to get Rs 10 crore by investing Rs 10,000 in a Mutual Fund SIP plan, provided you get an annual return of 12%. You may reach Rs 1 crore target in just 20 years and 1 month.
Rs 20,000 SIP: It would take 32 years and 11 months to get Rs 10 crore by investing Rs 20,000 in a Mutual Fund SIP plan, provided you get an annual return of 12%.
Rs 25,000 SIP: It would take 31 years and 1 month to get Rs 10 crore by investing Rs 25,000 in a Mutual Fund SIP plan, provided you get an annual return of 12%.
Rs 30,000 SIP: It would take 29 years and 7 months to get Rs 10 crore by investing Rs 30,000 in a Mutual Fund SIP plan, provided you get an annual return of 12%.
Source: Funds India’s Wealth Conversations Report December 2022
Rs 40,000 SIP: It would take 27 years and 3 months to get Rs 10 crore by investing Rs 40,000 in a Mutual Fund SIP plan, provided you get an annual return of 12%.
Rs 50,000 SIP: It would take 25 years and 6 months to get Rs 10 crore by investing Rs 50,000 in a Mutual Fund SIP plan, provided you get an annual return of 12%.
Rs 75,000 SIP: It would take 22 years and 3 months to get Rs 10 crore by investing Rs 75,000 in a Mutual Fund SIP plan, provided you get an annual return of 12%.
Rs 1 lakh SIP: It would take 20 years and 1 month to reach Rs 10 crore by investing Rs 1 lakh in a Mutual Fund SIP plan, provided you get an annual return of 12%. You may reach the Rs 1 crore target in just 5 years and 10 months.
(Disclaimer: The above content is for information purposes only. Mutual Funds are subject to market risks. There is no assurance or guarantee of returns from investing in any fund. Please consult your financial advisor before investing)