Do you want to invest Rs 2500 per month ?
Start a SIP in Equity Mutual Funds. Over the next 5 to 10 years you can create significant wealth.
Here is how much your money can grow to at the rate of ~12% per annum if you invest Rs 2500 per month.
- After year 5, you can have: Rs 2.1 lakhs
- After year 8, you can have: Rs 4.1 lakhs
If you continue doing this, you can have the following amounts in:
- Year 10: Rs 5.9 lakhs
- Year 15: Rs 12.5 lakhs
- Year 20: Rs 24 lakhs
- Year 25: Rs 45 lakhs
- Year 30: Rs 81 lakhs
- Year 35: Rs 1.5 CRORES
Imagine if you are a 25 year old who starts investing Rs 2500 and continue to do it till you retire at the age of 60 – Your small saving per month can grow from Rs 10.5 lakhs (2500 x 12 months x 35 years = Rs 10.5 lakhs) to Rs 1.5 crores.
That’s the magic of compounding and investing in the Equity asset class on a regular basis.
Note: The 12% return is a conservative assumption as Equity as an asset class has given a return of 16 – 17% per annum over the last few decades. However, there is no guarantee that it will grow at such rates hence the 12% assumption.