From ₹12,000 SIP To An ₹8 Crore Corpus: Your Path To A Comfortable Retirement

Building a sizable retirement corpus is a dream for many, and with disciplined investment, it is possible to reach that goal. If you start investing a modest amount monthly, like ₹12,000, you could potentially accumulate an ₹8 crore corpus over time. However, the journey requires patience, strategic planning, and the power of compounding to work its magic. Let’s explore how different annualised returns can impact the timeline for achieving an ₹8 crore corpus and the factors to consider for a successful retirement plan.

Investment Plans for an ₹8 Crore Corpus
Accumulating ₹8 crore through regular investments is not an overnight task; it demands a long-term and consistent approach. For our calculations, we use a monthly Systematic Investment Plan ( SIP ) of ₹12,000. The investment vehicle could be a mutual fund SIP or any other scheme providing annualised returns between 12% to 15%. The goal is to remain invested for an extended period to leverage compounding benefits.

The time taken to reach this substantial corpus largely depends on the rate of return. Here’s how various return rates affect the journey.

Building ₹8 Crore Corpus at Different Returns

1. At 12% Annualised Return
If the investment yields an annualised return of 12%, it will take around 36 to 37 years to accumulate an ₹8 crore corpus. This timeframe might seem lengthy, but it is crucial to understand the power of compounding. Over 37 years, the total amount you would invest is approximately ₹53.28 lakh, while the estimated long-term capital gains would stand at around ₹7.79 crore.

Key Points

• Total Investment: ₹53.28 lakh
  
• Estimated Capital Gains: ₹7.79 crore
  
• Estimated Corpus: ₹8.32 crore
  
• Timeframe: 36 to 37 years
  

2. At 13% Annualised Return
With a 13% annualised return, the time taken to achieve the ₹8 crore corpus reduces slightly to about 35 to 36 years. In 36 years, the total investment would amount to ₹50.4 lakh, and the long-term capital gains would be roughly ₹7.91 crore.

Key Points

• Total Investment: ₹50.4 lakh
  
• Estimated Capital Gains: ₹7.91 crore
  
• Estimated Corpus: ₹8.41 crore
  
• Timeframe: 35 to 36 years
  

3. At 14% Annualised Return
If the investment generates a 14% annualised return, the journey towards the ₹8 crore corpus further shortens to just under 33 years. Over this period, you would invest about ₹47.52 lakh, while the capital gains could potentially reach ₹7.75 crore.

Key Points

• Total Investment: ₹47.52 lakh
  
• Estimated Capital Gains: ₹7.75 crore
  
• Estimated Corpus: ₹8.23 crore
  
• Timeframe: Less than 33 years
  

4. At 15% Annualised Return
A 15% annualised return can significantly speed up the process, enabling you to reach an ₹8 crore corpus in just over 31 years. The total investment over this duration would be around ₹46.08 lakh, while the long-term capital gains could be approximately ₹8.51 crore.

Key Points

• Total Investment: ₹46.08 lakh
  
• Estimated Capital Gains: ₹8.51 crore
  
• Estimated Corpus: ₹8.97 crore
  
• Timeframe: 31 to 32 years
  

Starting Early: The Key to Building a Substantial Corpus
The prospect of saving and investing ₹12,000 monthly might seem daunting for a young investor, especially in their 20s. However, the sooner you begin your investment journey, the more time you have for compounding to work in your favour. If you start investing at 25, the ₹8 crore goal is achievable by the time you turn 60, setting you up for a comfortable retirement.

As your income increases over time, committing to a ₹12,000 SIP will become more manageable, and the returns will continue to grow, thanks to the steady compounding effect.

What Can You Do with an ₹8 Crore Corpus?

With an ₹8 crore retirement corpus, you can live a financially independent and comfortable life. Here's how you can use this corpus

• Cover Daily Expenses:

It allows you to comfortably meet your day-to-day expenses without relying on others.

Gifting and Legacy: If you have minimal financial responsibilities, you could consider gifting part of your wealth to your children or supporting causes close to your heart.

Travel and Leisure: Enjoy a lifestyle that includes travel, hobbies, and other activities that enrich your retirement years.

Things to Keep in Mind

• Consistency: Regular investments, even if they are small, are crucial to building a large corpus.
  
• Long-Term Vision: Building a corpus of ₹8 crore requires a long-term perspective, so starting early is beneficial.
  
• Financial Planning: Always consult with a financial expert to create a plan that best suits your risk appetite and long-term goals.
  

Disclaimer
These calculations are projections and not specific investment advice. Do thorough research or consult a financial advisor before making any investment decisions.