How much I need to invest to draw Rs 20000 a month through SWP (2024)

FAQs

How much I need to invest to draw Rs 20000 a month through SWP? ›

Ideally, you should invest Rs 30 Lakhs in lump sum and draw 8% annually (Rs 20,000 monthly through SWP) during the initial years. In future you can increase the withdrawal amount based on how your portfolios appreciates post withdrawal of monthly SWPs.

Value of INR 20,000 per Month in SIP

If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh. However, the returns of INR 5 lakh will turn into INR 17 lakh.

Since you can take out amount at regular intervals the risk of losing your entire investment is less in SWPs. Minimum balance: To start an SWP account you must have a minimum balance of Rs. 25,000 in your mutual fund.

Examples include ULIPs, mutual funds, etc. To get a 50K pension per month, you would need to invest around Rs. 9000 every month for 10-12 years in such plans. On the other hand, you have savings plans that offer guaranteed fixed income after retirement but do not invest in the market.

One strategy that can help you reach this goal is to invest in a mix of different assets, such as stocks, bonds, mutual funds, and real estate. This diversification helps to spread out the risk and increase the chances of achieving your desired returns.

Under this rule, the first 15 stands for the monthly investment that you need to make. That is, your monthly SIP amount will be Rs. 15,000. – The second one stands for your investment tenure of 15 years i.e., to achieve the mentioned goal of 1 crore, you need to invest 15000 every month for 15 years.

$500 per month invested for 20 years is about $430,000. $500 per month invested for 30 years is about $1,400,000. $500 per month invested for 40 years, is about $4,300,000.

If you have Rs. 50 lakhs to invest and want higher returns on it, an equity fund would be your best option. However, this is only for aggressive investors who are not afraid of the risks involved. On the other hand, if you want to play safe, a fixed deposit or a post office scheme would be more beneficial for you.

Which SIP gives highest return in 5 years? ›

It is also possible to accumulate one crore in ten years by saving and investing INR 40,000-45000 per month in an aggressive portfolio. If the SIP amount is increased by 5% annually and the interest rate increases by 12%, it would yield ₹1 crore taking ten years and six months to implement and benefit from this method.

Retirement Planning Using SWP

Post Investing, they need to opt for SWP option through which individuals can start getting monthly income. One of the advantages of SWP is the money does not get blocked as compared to other avenues such as Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (POIMS).

Here are some reasons why SWP from debt mutual funds is a better option than fixed deposits. Tax Deferment: One of the primary advantages of SWP from debt mutual funds is tax deferment. In fixed deposits, the interest earned is taxed every year.

Mutual fund calculator

However, if an investor had invested ₹10,000 per month in this mutual funds SIP plan 5 years ago, its ₹10,000 monthly investment would have turned to 11.98 lakh today. Value Research has given 5-star rating to this mid-cap mutual fund plan.

20,000 per month via SIP for 10 years, you are actually investing about Rs 24 lakh. But in return, you are getting around Rs 47-48 lakh. It is double of what you originally invested over the 10-year period.

According to tax and investment experts, if an investor invests ₹10,000 per month in mutual fund SIP for 30 years, he or she can accumulate around ₹12.7 crore at the time of maturity provided it has used 10 per cent annual step-up.

According to FIRE, your portfolio should cover 25 times your annual expenses. Then, if you withdraw 4% of your portfolio every year, your portfolio will continue to grow and won't be compromised. We can apply this formula to the goal of making $3,000 a month like this: $3,000 x 12 months x 25 years = $900,000.

Let's say you want to become a millionaire in five years. If you're starting from scratch, online millionaire calculators (which return a variety of results given the same inputs) estimate that you'll need to save anywhere from $13,000 to $15,500 a month and invest it wisely enough to earn an average of 10% a year.

What if I invest $10,000 a month for 10 years? ›

If an investor invested Rs. 10,000 as SIP for a decade, the total return would be Rs. 21.66 lacs.

HDFC Monthly Income Plan Short-term Plan Direct-Growth Fund Details. Investment Objective - The scheme aims to generate regular returns through investment primarily in debt and money market instruments. It will also invest in equity and equity related securities to generate long-term capital appreciation.

This investment can be done through banks or other financial institutions. The monthly interest rates on a ₹30 Lakhs fixed deposit are much higher than that of a savings account. Current rates allow you to earn up to 8.60% on ₹30 Lakh FD. The time period for these fixed deposits generally range from 7 days to 10 years.

By investing just Rs. 5000 every month in an SIP, you can create high returns to meet your long-term goals. A systematic investment plan allows you to invest a monthly sum in a single type of fund, be it equity, debt, gold, etc. You can choose to diversify by investing in different types to balance out the risk.

What is the interest of 1 crore per month in SBI? The SBI bank offers a monthly interest of 3.40% - 6.30% on an investment of Rs. 1 crore.

I think if I will ask “Is 1 Crore enough to Retire?” most of you will say “Yes” & even I agree in some of the cases it will be YES. But unfortunately in most cases, Rs 1 Crore will not be able to provide you decent income to survive.

How much to invest in SIP to get 10 crore in 10 years? ›

Age 21: You will need to invest Rs 9493/month in a SIP to get Rs 10 crore at age 60 if the rate of returns is 12% per annum. Age 22: You will need to invest Rs 10,710/month in a SIP to get Rs 10 crore at age 60 if the rate of returns is 12% per annum.

According to Post Office RD Calculator, if you invest Rs 5,000 per month for five years the total return on your investment will be Rs 48,740 (with monthly compounding frequency). So the total amount that you will get after five years would be Rs 3,48,740.

By investing Rs 50,000 per month one time, he could look to accumulate Rs. 19.16 lakhs in twenty years with 20% annualized returns. We have taken a weighted average of the return of each fund after considering the lower 3-year and 5-year returns as the return over the 20 years.

5 year SIP of Rs 15000 monthly = Rs 12.8 lakh. 10 year SIP of Rs 15000 monthly = Rs 35 lakh. 15 year SIP of Rs 15000 monthly = Rs 75 lakh.

50 Lakhs in 10 years, one needs to make a monthly SIP amount of Rs. 22000 (Assuming a CAGR return of 12%). You can think of building the portfolio with a healthy mix of funds from Large & Mid Cap, Flexi Cap, Mid Cap and Value categories of equity. It is advisable to divide the monthly SIP amount (Rs.

Assuming an individual plans to accumulate a corpus of ₹1 Crore over a period of 10 years and the fund generates an annualized CAGR of 12%, then they need to start a monthly SIP of around ₹43,040 to achieve the required corpus.

10Crs in 20 years, you will need to have SIPs of Rs. 1.01 lakh per month (assuming returns of 12% pa) in equity mutual funds.

20 year SIP of Rs 25000 monthly = Rs 2.4 crore. 25 year SIP of Rs 25000 monthly = Rs 4.5 crore. 30 year SIP of Rs 25000 monthly = Rs 8.1 crore.

If an investor invested Rs. 10,000 as SIP for a decade, the total return would be Rs. 21.66 lacs.

FV = P [ (1+i)^n-1 ] * (1+i)/iFV = Future value or the amount you get at maturity. Take an example where you invest Rs 2,000 per month for a tenure of 24 months. You expect a 12% annual rate of return (r). You have i = r/100/12 or 0.01.

What if I invest $10,000 every month in mutual funds? ›

10,000 in mutual funds can generate substantial returns over a long investment period. The returns will be dependent on various factors like the choice of fund, market trends, and the performance of the particular scheme.

Here it's important to understand that the longer we have to save and grow our money, the less we have to save each month to reach our goal. If we want to become a millionaire in 10 years, we would need to save about $6,000 per month.

But if you wait even five years to start saving that $300 a month, you'll end up with roughly $719,000, instead. To be clear, that's still a respectable amount of savings to kick off retirement with. But let's face it -- it's not $1 million.

If you'd invested $600 in a lump sum and allowed it to grow for 10 years at 10.3% a year, you'd have almost exactly $1,600. Stock market returns are never guaranteed, of course. But the longer your holding period is, the higher your odds of success are.

If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

If you invest $10,000 today at 10% interest, how much will you have in 10 years? Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.

This means that a SIP of ₹30,000 for 5 years would've earned you a profit of approximately ₹15,31,858.