Benefits of SIP Investing
Power of Compounding
When you invest regularly through SIP and invest for the long term, the benefits are magnified by the compounding effect. Compounding effect ensures that you earn returns not only on your principal amount (actual investment) but also on the gains on the principal amount i.e. your money grows over time as the money you invest earns returns. And the returns also earn returns.
Calculate Monthly SIP Amount
Wondering how much you should start investing monthly to achieve your goal in time? Try out this tool and get your plan in place.
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Monthly Investment Amount
Power of Starting early
The earlier one starts saving and investing regularly, the easier it is to achieve your goals. The graph below shows the impact of beginning to invest Rs.5,000 monthly at various stages of life till the age of 60 years (assuming a return of 12% p.a.).
5 Years’ early start result in an
additional Rs. 1.21 crore in the
final retirement corpus.
- Amount invested via SIP
- Value of investment on Retirement
the above graph in for illustrative purpose only.
Source : Internal
If you start SIP at age 25, as per the illustration shown a corpus of approximately Rs. 2.76 crores can be generated at retirement. If you would have waited 5 years and started SIP at age 30, a corpus of approximately Rs. 1.54 crore would have been available to you at retirement i.e. a difference of Rs. 1.21 crore – which is the ‘cost of delaying starting SIP’.