Since investing is always a boring topic. Before moving forward, let me get you excited about it.

Let’s look at these three scenarios where you are investing Rs. 10k every month for next 30 years.

1. Saving in a Piggy bank — you would have Rs. 36,00,000 (36 lakhs)

2. Investing in a Bank FD 9% interest — you would get a tax-adjusted return of 6.3% and would have Rs. 1,00,03,233 (1 crore)

(considering you fall in 30% tax bracket — (9% — .3 * 9% = 6.3%)

3. Investing in a Sensex at expected 12% interest (tax-free over 1 year) — you would have Rs 2,89,59,922 (~ 3 crore)

Remember you are saving just Rs. 10k per month.

And if you increase your investment by 10% every year with your corresponding salary increase (so 10k in Year1, 11k in Year2, so on..) you would have Rs. 7,50,63,119 (~7.5 crore)

So if now I have your interest, wait for the next blog on Easy Investing via Mutual Funds.

Want to try out more permutations and combinations of how much wealth you can create, use this SIP calculator — http://www.jagoinvestor.com/calculators/html/Increasing-SIP-Calculator.html

Note: I chose 12% ROI for Sensex as over any 10 year period since Sensex launch, 13% has been the minimum return over a 10 year period. Otherwise, the returns vary on annual basis from -49% to +75%. But if you stay invested over 10 year period, returns have always been positive. Read More over here at — Sensex Rolling Returns