Discover how the power of compounding may help you retire with crores by starting SIPs at different periods of life: Rs 1,000 at age 20, Rs 3,000 at age 30, and Rs 4,000 at age 40. Mutual funds The best strategy to accumulate wealth over time and create a sizable corpus with compounding interest is through SIP.
Compounding in SIPs allows investors to regularly invest a pre-determined amount, with the most prevalent form being the monthly SIP. This compounding impact generates income from both the initial investment and subsequent interest earned over time.
Starting with Rs 1,000 at 20, Rs 3,000 at 30, and Rs 4,000 at 40 can help retire a crorepati by the age of 60. An annualised return of 12% on a Rs 1,000 SIP can lead to a corpus of Rs 1.19 crore, Rs 3.5 crore, Rs 1.05 crore, Rs 2.65 crore, and Rs 80 lakh. Increasing the SIP amount by 10% annually can further increase the corpus.
