Rs 500 Weekly SIP: How Much Can It Accumulate In 10-15 Years?
This market-linked investment strategy has delivered attractive returns in the past, positioning it as ideal for long-term wealth generation.
Systematic Investment Plans (SIPs) are a popular tool to create long-term wealth by investing in mutual funds. They are convenient, easy to track and encourage small, regular contributions, building fiscal discipline among investors.
This market-linked investment strategy has delivered attractive returns in the past, positioning it as ideal for long-term wealth generation. A longer investment horizon via SIPs allows investors to benefit from the power of compounding.
One of the convenient features of SIPs is their flexibility. Investors can choose their contribution timeline: monthly, quarterly, or even weekly, based on their financial comfort. Moreover, the minimum amount can be as low as Rs 500, allowing investors to build wealth gradually without straining their budgets.
Past trends have shown that smaller SIPs of even Rs 500 have created significant wealth over time, rewarding investors for their patience and fiscal discipline. The longer the investment horizon, the more powerful the magic of compounding becomes. Here’s how:
SIP Type - Rs 500 Weekly For 10-Year Duration:
Investment duration: 10 years
Expected return: 12% per annum
Total investment: Rs 2,60,700
Estimated return: Rs 1,87,435
Total value: Rs 4,48,135
SIP Type - Rs 500 Weekly For 15-Year Duration
Investment duration: 15 years
Expected return: 12% p.a.
Total investment: Rs 3,91,050
Estimated return: Rs 5,16,686
Total value: Rs 9,07,736
From the above calculation, it’s quite clear that extending your investment duration by just 5 years can significantly increase the total corpus. Compared to a 10-year tenure, extending the investment period to 15 years more than doubles the total amount.
In the past, SIPs have delivered even better returns in many funds. However, it is important to be realistic with stock market-related investments and account for factors like taxes and inflation. This helps the investor to set a precise financial goal.
