Mutual fund calculator: How to accumulate ₹41 crore with a monthly Systematic Investment Plan (SIP) of ₹15000

Mutual fund calculator: The market's ups and downs can feel like a rollercoaster, but seasoned investors know that true wealth is built through patience and consistency. Imagine watching a seed grow into a mighty tree. That's the magic of compounding in mutual funds. After navigating the recent market dips, it's time to understand the power of staying invested. By consistently contributing through SIPs, even small amounts like ₹500 a month, you're not just investing money but planting seeds for future wealth. And for those with dreams of early retirement, we'll illustrate how starting early, leveraging SIPs, and understanding step-ups' power can make them live rich and accumulate substantial wealth.

Mutual fund SIP calculator

Suppose an investor starts a monthly SIP with ₹15,000 at 25, assuming a 15 per cent annual return on his money in the next 35 years. In that case, the SIP calculator shows that if an investor uses a 10 per cent step-up yearly in his monthly SIP, it would be able to grow around ₹ 41 crore in 35 years or by the time he is 60 years old.

Regarding how much annual SIP would be advisable for an investor, personal finance experts suggest a 10 per cent annual SIP step-up if the person wants to retire at 60.

"Equity mutual funds suit long-term orientation while hybrid/debt funds fit conservative investors. Tax efficiency, such as the benefits of ELSS (Section 80C), is an attractive offering, but do not try to time the market: start early and stick with it; diversification is suggested between large-cap, mid-cap, and international," said CA Jeevan Jagetiya, Director - JJ IPO Advisors Pvt Ltd (SEBI Reg CAT-1 Merchant Banker).

Jitendra Solanki, a SEBI-registered tax and investment expert, explained, "Investing in mutual funds is often employed by experienced equity investors during a market downturn. After a stock market crash, a lump sum investment in an equity mutual fund is recommended for long-term investors with a five-year horizon. By investing a lump sum post-crash, investors can acquire units at a lower NAV, allowing them to benefit when the market recovers during a bull run, ultimately leading to wealth creation."

Mutual funds are an exceptional long-term investment choice for investors across India who are looking for diversification and long-term wealth creation.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.