# SIP Calculator – Accumulate 1 CR in 15 years

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take \$800 and go to Las Vegas” – Paul Samuelson

SIP is definitely one of the best ways to invest in mutual funds. Based on the weighted returns, the following table shows the amount you need to invest every month. For example, if you are an aggressive investor, your expected return is 10.95 percent. For simplicity, we will assume it as 11 percent. So, if you are 45 years old now and you want Rs One Crore at the end of 60 years, then you have 15 years to achieve that and you need to invest Rs. 22,879.53 every month to reach that goal. In these 15 years, you will be investing Rs. 41 lakhs. However, if you are 40 years of age and want to accumulate the same amount (Rs. 1 Crore) by the age of your retirement (60 years) and your investment generates returns of 12 percent, you need to invest just Rs. 10,871.25 to get the desired amount. You can calculate this amount using a SIP calculator. The total investment you invest would be around Rs 26 lakh. So, the earlier you start investing, the lower you need to invest. You can use the SIP calculator using either the investment amount approach or the target amount approach.

## Becoming A Crorepati:

The route to become a crorePati for retail investors demands a very systematic and disciplined approach. Mutual Funds provide a simple and hassle-free way of achieving the target amount. There is a thumb rule of 15*15*15 that will help you to accumulate a corpus of Rs 1 crore. According to this thumb rule, if you invest Rs. 15,000 every month for a period of 15 years and your investment generates 15 percent return, you will be able to accumulate Rs. 1 Crore. You can check this via SIP calculator.

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Rupees One Crore may not be a very inspirational amount for many of you now, nevertheless, it can still help you achieve a lot of financial goals. But before you start investing, it is important to pick the right kind of funds. Recently, you may have seen IT dedicated funds on a tear, but these funds cannot be the core of your portfolio as their performance is very cyclical and many times these funds are too volatile. Hence, the core of your portfolio should be funds that are all-weather and mitigate the downside risk better. Similarly, for debt funds, you should select funds whose duration matches the time frame of your financial goals.

## Benefits Of Using SIP Calculator:

Before making any investment decision, it is critical to conduct research and analysis. Also, before investing, you must calculate the possible profits to determine whether the investment opportunity is worthwhile. Furthermore, it is necessary to ensure that the investor’s financial goals and the asset’s investing goals are aligned. This allows investors to select the asset that will help them achieve their objectives more quickly. The benefits of the SIP calculator are as discussed below:

• An SIP calculator helps you get accurate results which are fundamental to taking calculated risks. You can detail like your monthly investment amount, tenor and expected results of your total invested amount, total maturity amount, and your earnings on the investment. The accurate results of this calculator backed by the formula in its system removes the need to manually calculate your returns and make a mistake.
• Apart from accurate results, SIP Calculator also gives you much faster results than manually calculating the same.
• One of the key benefits of using SIP calculators is that you can forecast your investment plans and look at different outcomes. Tenor or the investment amount can be changed to see how much your SIP is affected. This in turn helps you to choose the best tenor and amount in order to reap the most profitable returns.
• SIP calculator helps you to make an informed selection of an SIP. By comparing the results in the SIP calculator, you can choose the best SIP to invest in. This helps you to choose a top SIP for your investment to perform well and reap high profits.
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Let’s see how you can accumulate 1 CR in 15 years with the help of using SIP Calculator with the help of following scenarios:

Scenario 1: If Mr. Sandeep maintains a 10% annual step-up for his 15 years SIP, then assuming 10% annual return, he will have to start monthly SIP with ₹ 13,445.

Scenario 2: If Mr. Sandeep maintains a 15% annual step-up for his 15 years SIP, then assuming 11% annual return, he will have to start monthly SIP with ₹ 9,063.

Scenario 3: If Mr. Sandeep maintains a 20% annual step-up for his 15 years SIP, then assuming 12% annual return, he will have to start monthly SIP with ₹ 6,070.

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### Shankar

Shankar is a tech blogger who occasionally enjoys penning historical fiction. With over a thousand articles written on tech, business, finance, marketing, mobile, social media, cloud storage, software, and general topics, he has been creating material for the past eight years.