Mutual Fund Calculator: Starting Rs 3000 SIP at 30? Here’s how much you will get at retirement

financialexpress.com:

Mutual fund SIP is the best way to build wealth over the years and make a big corpus with a compounding impact.

SIPs (Systematic Investment Plans) in mutual funds enable investors to regularly invest a pre-determined amount of money. The most prevalent form of SIP is the monthly SIP, wherein a fixed sum is invested in the chosen mutual fund on a specified date each month.

While mutual fund SIPs can be profitable, it’s important to find the right fund and commit to long-term investing. Using a mutual fund calculator can help in choosing the best mutual fund and monitoring your investment progress over time.

Mutual fund compounding allows investors to earn interest on their invested funds and reinvest the returns, generating further interest over time. The compounding impact of SIP investments allows income generation not only from the initial investment but also from the subsequent interest earned.

Ramneek Ghotra, Chief Growth Officer, Finvasia, explains how the power of compounding in mutual fund SIP works and helps investors amass a huge corpus over time.

Also read: Mutual fund strategy to manage market volatility: Bring balanced advantage funds into your game

If you start investing Rs 1,000 at the age of 20, Rs 3,000 at the age of 30, and Rs 4,000 at the age of 40, you will retire a crorepati by the age of 60! This is the power of compounding and consistency, says Ghotra.

Let’s for example take this calculation, an SIP of Rs 1,000 per month in a mutual fund scheme with contributions for 40 years at an annualised return of 12% can take you to Rs 1.19 crore corpus. If this monthly SIP is increased by 10% every year, your corpus can be Rs 3.5 crore – this is the power of compounding.

If you invest Rs 3,000 in SIP and