To create a fund of Rs 1 crore, you will have to invest this much every month, this is the calculation

If you are thinking of creating a fund of Rs 1 crore, then you should understand this calculation once. With this you will know how much you can invest every month to create a corpus of Rs 1 crore in minimum time.

It is often said that a person should start investing as early as possible. For this, experts also advise people to invest according to their income and risk appetite. In such a situation, if you want to create a fund of Rs 1 crore through mutual fund or SIP, then here you will understand the complete calculation.

By depositing some money every month in SIP, you can create a huge fund in the long term. It does not increase the burden on your pocket and your investment also becomes secure. In such a situation, how much money will you have to deposit in SIP every month so that a fund of Rs 1 crore is ready? Let us tell…

Right way to invest in SIP

If you want to invest in SIP to create a fund of Rs 1 crore, then you have to keep some things in mind.

Time Frame: You will have to prepare a fixed timeframe for when you want to prepare a fund of Rs 1 crore. If you do not fix any time frame, you will have difficulty in deciding how much to invest every month.

Taking into account inflation: Suppose you want to prepare a fund of Rs 1 crore for 10 years. In such a situation, you will have to calculate inflation also, because then whether a fund of Rs 1 crore will be enough for you or not, it will depend on the level of inflation.

Actually you will need this much fund

You are thinking of creating a fund of Rs 1 crore as of today for 10 years. But if the inflation rate remains 7 percent every year, then you will need not Rs 1 crore but actually Rs 1,96,71,514, because by then the value of your Rs 1 crore will reduce. Now you can calculate your monthly SIP accordingly.

This much money will have to be deposited every month

If you keep the above calculations in mind, then to create a fund worth Rs 1 crore in 10 years, you will have to deposit around Rs 70,500 every month, then your total fund will be Rs 1,96,45,338. . In this, the annual return on SIP has been calculated at 15%.