A back-of-the-envelope ready reckoner for imbibing the good habit of Systematic Investment Plans and gaining from the power of compounding.
Rs.1000 monthly investment for 30 years (i.e. Rs.3.6 lakh) could fetch:-
a) Rs.11.8 lakh in Recurring Deposit at 7% CAGR
b) Rs.14.2 lakh in Post Off./Debt fund at 8% CAGR
c) Rs.20.8 lakh in ELSS/Large cap fund at 10% CAGR
d) Rs.30.8 lakh in Balanced/Multi-cap fund at 12% CAGR
e) Rs.56.4 lakh in Mid-cap/Small-cap fund at 15% CAGR