How much do you need to invest every month (in SIP) to reach - Rs 10 Crore in 15 or 20 or 25 or 30 years?
A thread 𧡠and a simple ready-reckoner with all the exact answers.
(1/n)
A thread 𧡠and a simple ready-reckoner with all the exact answers.
(1/n)
If you want to have Rs 10 crore in 15 years, then:
- at 8% returns, invest Rs 2.8-2.9 lakh per month.
- at 10% returns, invest Rs 2.3-2.4 lakh per month.
- at 12% returns, invest Rs 1.9-2.0 lakh per month.
(2/n)
- at 8% returns, invest Rs 2.8-2.9 lakh per month.
- at 10% returns, invest Rs 2.3-2.4 lakh per month.
- at 12% returns, invest Rs 1.9-2.0 lakh per month.
(2/n)
If you want to have Rs 10 crore in 20 years, then:
- at 8% returns, invest Rs 1.6-1.7 lakh per month.
- at 10% returns, invest Rs 1.3-1.4 lakh per month.
- at 12% returns, invest Rs 1.0-1.1 lakh per month.
(3/n)
- at 8% returns, invest Rs 1.6-1.7 lakh per month.
- at 10% returns, invest Rs 1.3-1.4 lakh per month.
- at 12% returns, invest Rs 1.0-1.1 lakh per month.
(3/n)
If you want to have Rs 10 crore in 25 years, then:
- at 8% returns, invest Rs 1.0-1.1 lakh per month.
- at 10% returns, invest Rs 76-78,000 per month.
- at 12% returns, invest Rs 54-56,000 per month.
(4/n)
- at 8% returns, invest Rs 1.0-1.1 lakh per month.
- at 10% returns, invest Rs 76-78,000 per month.
- at 12% returns, invest Rs 54-56,000 per month.
(4/n)
If you want to have Rs 10 crore in 30 years, then:
- at 8% returns, invest Rs 68-70,000 per month.
- at 10% returns, invest Rs 46-48,000 per month.
- at 12% returns, invest Rs 30-32,000 per month.
(5/n)
- at 8% returns, invest Rs 68-70,000 per month.
- at 10% returns, invest Rs 46-48,000 per month.
- at 12% returns, invest Rs 30-32,000 per month.
(5/n)
These are just approximate figures. The actual SIP amount that you need to invest will be slightly higher due to the taxation of Long Term Capital Gain on equity investments in India
(6/n)
(6/n)
To summarize, if we keep our avg. return expectations at 10-12%, then to reach Rs 10 crore:
- In 15 years, invest Rs 2-2.4 lakh monthly
- In 20 years, invest Rs 1.02-1.34 monthly
- In 25 years, invest Rs 54-78,000 monthly
- In 30 years, invest Rs 30-48,000 monthly
(7/n)
- In 15 years, invest Rs 2-2.4 lakh monthly
- In 20 years, invest Rs 1.02-1.34 monthly
- In 25 years, invest Rs 54-78,000 monthly
- In 30 years, invest Rs 30-48,000 monthly
(7/n)
I know many of you might be laughing that who has that kind of money every month to invest (at least for many scenarios above).
While what you say is true, it is also true that some of your goals are huge (and cost a lot) and naturally, require that kind of investment.
(8/n)
While what you say is true, it is also true that some of your goals are huge (and cost a lot) and naturally, require that kind of investment.
(8/n)
But donβt worry. Do what you can with whatever you have. Starting small is fine.
Start now & then as your income increases, start increasing or step-up SIPs every 1-2 yrs. Thatβs easier & lighter on cashflows. Here is how it reduces investment requirements initially.
(9/n)
Start now & then as your income increases, start increasing or step-up SIPs every 1-2 yrs. Thatβs easier & lighter on cashflows. Here is how it reduces investment requirements initially.
(9/n)
Using an example from above β Say you want Rs 10 Cr in 25 years at 10% returns. You need to invest Rs 77,000 per month for the next 20 years. You might not have spare Rs 77,000 every month to start with. In that case, start smaller & increase your SIPs every year.
(10/n)
(10/n)
Say you start with Rs 50-51,000 monthly & increase the SIP by 5% every year, then you can still reach the target of Rs 2 Cr in 25 years.
Or if you start with Rs 39-42,000 monthly SIP and then increase the SIP by 7-8% every year, then too you reach Rs 10 Cr in 25 years.
(11/n)
Or if you start with Rs 39-42,000 monthly SIP and then increase the SIP by 7-8% every year, then too you reach Rs 10 Cr in 25 years.
(11/n)
So donβt wait to have the right amount to begin. Just start with what you have and increase it as you go along and begin earning more.
(12/n)
(12/n)
If your retirement target is Rs 10 Cr, then do read:
How to build your Retirement Corpus of Rs 10 crore?
πππ
stableinvestor.com
(13/n)
How to build your Retirement Corpus of Rs 10 crore?
πππ
stableinvestor.com
(13/n)
If your retirement target is lower at Rs 5 Cr, then do read:
How to build your Retirement Corpus of Rs 5 crore?
πππ
stableinvestor.com
(14/n)
How to build your Retirement Corpus of Rs 5 crore?
πππ
stableinvestor.com
(14/n)
While getting 7-8% is possible from debt, you need to invest in equities to get 10-12% returns. And in any case, when you are investing for long-term and periods like 15-20-25 years, then you should ideally be investing a major chunk in equities (or equity funds).
(15/n)
(15/n)
If you invest in equities, you can comfortably get 10-12% average returns in the long term. It can give higher as well, but letβs not be greedy at the start itself.
(16/n)
(16/n)
For investing in equity funds, pick schemes from categories like largecap index funds, flexicap funds, large&midcap funds, midcap funds and smallcap funds.
(17/n)
(17/n)
Also remember that if you start heavy on equity (say 80-90%) when the goal is 15+ years away, then start reducing equity allocation as you get closer to the goal day.
(18/n)
(18/n)
Something like:
- Goal 10-15 years away β 90-100% equity
- Goal 7-10 years away β 70-90% equity
- Goal 5-7 years away β 60-75% equity
- Goal 3-5 years away β 35-60% equity
- Goal 1-3 years away β 15-35 % equity
- Goal 0-1 years away β 0-15% equity
(19/n)
- Goal 10-15 years away β 90-100% equity
- Goal 7-10 years away β 70-90% equity
- Goal 5-7 years away β 60-75% equity
- Goal 3-5 years away β 35-60% equity
- Goal 1-3 years away β 15-35 % equity
- Goal 0-1 years away β 0-15% equity
(19/n)
Also, we discussed just the numbers above. That is the target of Rs 10 crore. But numbers without context are not very useful.
So it is best to decide on the target goal amounts based on your actual financial goals.
(20/n)
So it is best to decide on the target goal amounts based on your actual financial goals.
(20/n)
If you have read till here(!), then do take some time out to finalize your financial goals as well.
Do read Why Goal-Based Investing is the Best Option for you πππ
stableinvestor.com
(21/n)
Do read Why Goal-Based Investing is the Best Option for you πππ
stableinvestor.com
(21/n)
And why focus on goals more than just random figures? Because Goal-based Investing is what works best for everyone. You may not believe that now but that is what it is and eventually, that realization happens. Random investments donβt take you anywhere.
(22/n)
(22/n)
To finalize your goals, go ahead and use this free-to-download excel sheet I made a few years back, to figure out and finalize your financial goals before you invest even a Rupee nowπππ
stableinvestor.com
(23/n)
stableinvestor.com
(23/n)
Or if you think you need help planning your goals, finalizing your investment plans and reviewing your existing investments...
Then do connect with an investment advisor to help you with financial planning πππ
stableinvestor.com
(24/n)
Then do connect with an investment advisor to help you with financial planning πππ
stableinvestor.com
(24/n)
And just before I leave, what if your targets are lower than Rs 10 Crore? Say Rs 1, 2 or 5 crore? How much do you need to invest then?
(25/n)
(25/n)
I wrote a thread about How much you need to invest in SIP to reach?
- Rs 1 Crore in 10 / 15 years
- Rs 2 Crore in 10 / 15 / 20 years
- Rs 5 Crore in 15 / 20 / 25 years.
Check it here πππ
(26/n)
- Rs 1 Crore in 10 / 15 years
- Rs 2 Crore in 10 / 15 / 20 years
- Rs 5 Crore in 15 / 20 / 25 years.
Check it here πππ
(26/n)
That was the thread. It went a bit long. But if you found this thread useful, then do share it with others as well.
You can also retweet the link to the first tweet of this thread to spread the word. Link below. Thanks. πππ
You can also retweet the link to the first tweet of this thread to spread the word. Link below. Thanks. πππ
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