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SIP Calculator: Do you need a corpus of ₹5 lakh or ₹10 lakh in 3 years? Find out how much you’ll need to invest in a monthly SIP.
SIP calculator: Can a big fund of Rs 5 lakh or 10 lakh be created through SIP in just 3 years? The answer is- Yes! But due to less time, it is very important to do the right mathematics and choose the right funds. Know how much amount you will have to invest every month according to the expected return of 12%, what is the right asset allocation to avoid market fluctuations.
SIP Investment Plan: If your aim is to buy a new house, car, get married or complete any big work in the next 3 years and for this you need a fund of ₹ 5 lakh or ₹ 10 lakh, then mutual fund SIP can be a great option.
Although 3 years is a very short time in investment journey, but by calculation and choosing the right funds, you can easily achieve your goal.
SIP calculation of ₹5 lakh and ₹10 lakh in 3 years
Since 3 years is a short period, we have done this calculation assuming an average annual return of 12% keeping in mind the stock market risk. This return can be easily expected from large-cap or hybrid funds.
| Target | Investment Period | Estimated Returns | Required Monthly SIP | total investment | Estimated profits |
| ₹5 lakh | 3 year | 12% | ₹11,610 per month | ₹4,17,960 | ₹82,040 |
| ₹10 lakh | 3 year | 12% | ₹23,220 per month | ₹8,35,920 | ₹1,64,080 |
Market fluctuations impact your SIPs on varying returns
Mutual fund returns depend on market movements. Understand how much your monthly SIP will be based on whether the market performs well or remains sluggish:
To build a corpus of ₹5 lakh (in 3 years):
At 10% return: ₹12,050 per month
At 12% return: ₹11,610 per month
At 15% return: ₹10,980 per month
To build a corpus of ₹10 lakh (in 3 years):
At 10% return: ₹24,100 per month
At 12% return: ₹23,220 per month
At 15% return: ₹15% return: ₹21,960 per month
Where and how to invest for a short period (3 years)?
Over a three-year horizon, avoid investing in highly risky funds, such as small-cap or sector funds. Here’s how to properly allocate your portfolio:
50% Component – Aggressive Hybrid Funds: These have a balance of both equity and debt, which provides stable returns with low risk.
30% Portion – Large Cap/Nifty 50 Index Fund: It invests in the top 50 companies in the country, ensuring your money is safe.
20% Portion – Short-Duration Debt Funds: This provides stability to the portfolio by protecting it from market fluctuations.
Make your goals easier with Step-Up SIP
If you can’t afford a large SIP of ₹23,000 per month right away, you can use a Step-Up SIP. For example, start with ₹18,000 and increase your SIP amount by 10% to 15% each year. This will avoid a sudden significant burden on your pocket and help you achieve your goal within three years.
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The post SIP Calculator: Do you need a corpus of ₹5 lakh or ₹10 lakh in 3 years? Find out how much you’ll need to invest in a monthly SIP. first appeared on informalnewz.
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