Half-yearly SIP vs quarterly SIP: Rs 22,000 half-yearly SIP or Rs 11,000 quarterly SIP, which works better in 25 years?
Quarterly SIP vs Half Yearly SIP vs Lump Sum Mutual Fund Investment: Did you know that fundhouses today offer different types of structured investment plans (SIPs) to suit your investment style and cash flow? By carefully choosing the right frequency and amount, one can make the most of their SIP to invest in the mutual fund scheme of their choice without disrupting their cash flow or compromising on their regular expenses. In this article, you can compare the potential results of different investments in a mutual fund scheme for the same expected annual return of 12 percent and the same investment tenure of 25 years: Quarterly SIP of Rs 11,000, half yearly (half yearly (half per annum) – per annum) SIP of Rs 22,000 and total investment of Rs 11 lakh.
However, nothing beats the effect of a lump sum investment in a mutual fund, where the investor parks the entire sum of money at once. This is due to integration. Therefore, comparing these ratios with the total investment of the same amount invested will further highlight the differences between these investments.
Which one should you choose: Rs 11,000 quarterly SIP, Rs 22,000 half-yearly SIP or a total investment of Rs 11 lakh—25 years?
Let’s compare these three scenarios: Quarterly SIP of Rs 11,000 for 25 years, half yearly SIP of Rs 22,000 for 25 years and total investment of Rs 11 lakh for 25 years.
In each of these three cases, the total amount invested will be Rs 11 lakh.
Scenario 1: Rs 11,000 per quarter SIP for 25 years
At an expected annual return of 12 per cent, a quarterly SIP of Rs 11,000 will accumulate a corpus of about Rs 68.81 lakh (with a principal of Rs 11 lakh and an expected return of Rs 57.81 lakh), the figures show.
| Time (in years) | Investment | Come back | The Corpus |
| 1 | 44,000 | 3,400 | 47,400 |
| 2 | 88,000 | 12,750 | 1,00,750 |
| 3 | 1,32,000 | 28,796 | 1,60,796 |
| 4 | 1,76,000 | 52,377 | 2,28,377 |
| 5 | 2,20,000 | 84,441 | 3,04,441 |
| 6 | 2,64,000 | 1,26,052 | 3,90,052 |
| 7 | 3,08,000 | 1,78,407 | 4,86,407 |
| 8 | 3,52,000 | 2,42,856 | 5,94,856 |
| 9 | 3,96,000 | 3,20,916 | 7,16,916 |
| 10 | 4,40,000 | 4,14,296 | 8,54,296 |
| 11 | 4,84,000 | 5,24,918 | 10,08,918 |
| 12 | 5,28,000 | 6,54,947 | 11,82,947 |
| 13 | 5,72,000 | 8,06,818 | 13,78,818 |
| 14 | 6,16,000 | 9,83,272 | 15,99,272 |
| 15 | 6,60,000 | 11,87,395 | 18,47,395 |
| 16 | 7,04,000 | 14,22,660 | 21,26,660 |
| 17 | 7,48,000 | 16,92,975 | 24,40,975 |
| 18 | 7,92,000 | 20,02,740 | 27,94,740 |
| 19 | 8,36,000 | 23,56,905 | 31,92,905 |
| 20 | 8,80,000 | 27,61,043 | 36,41,043 |
| 21 | 9,24,000 | 32,21,426 | 41,45,426 |
| 22 | 9,68,000 | 37,45,115 | 47,13,115 |
| 23 | 10,12,000 | 43,40,052 | 53,52,052 |
| 24 | 10,56,000 | 50,15,183 | 60,71,183 |
| 25 | 11,00,000 | 57,80,570 | 68,80,570 |
Scenario 2: Rs 22,000 half yearly SIP for 25 years
At the same expected return, a SIP of Rs 22,000 for half a year will result in a bonus of around Rs 67.71 lakh (with a principal of Rs 11 lakh and an estimated return of Rs 56.71 lakh), according to the calculations.
| Time (in years) | Investment | Come back | The Corpus |
| 1 | 44,000 | 4,039 | 48,039 |
| 2 | 88,000 | 14,016 | 1,02,016 |
| 3 | 1,32,000 | 30,664 | 1,62,664 |
| 4 | 1,76,000 | 54,809 | 2,30,809 |
| 5 | 2,20,000 | 87,376 | 3,07,376 |
| 6 | 2,64,000 | 1,29,407 | 3,93,407 |
| 7 | 3,08,000 | 1,82,071 | 4,90,071 |
| 8 | 3,52,000 | 2,46,683 | 5,98,683 |
| 9 | 3,96,000 | 3,24,720 | 7,20,720 |
| 10 | 4,40,000 | 4,17,840 | 8,57,840 |
| 11 | 4,84,000 | 5,27,908 | 10,11,908 |
| 12 | 5,28,000 | 6,57,019 | 11,85,019 |
| 13 | 5,72,000 | 8,07,527 | 13,79,527 |
| 14 | 6,16,000 | 9,82,076 | 15,98,076 |
| 15 | 6,60,000 | 11,83,637 | 18,43,637 |
| 16 | 7,04,000 | 14,15,550 | 21,19,550 |
| 17 | 7,48,000 | 16,81,565 | 24,29,565 |
| 18 | 7,92,000 | 19,85,899 | 27,77,899 |
| 19 | 8,36,000 | 23,33,286 | 31,69,286 |
| 20 | 8,80,000 | 27,29,049 | 36,09,049 |
| 21 | 9,24,000 | 31,79,167 | 41,03,167 |
| 22 | 9,68,000 | 36,90,357 | 46,58,357 |
| 23 | 10,12,000 | 42,70,169 | 52,82,169 |
| 24 | 10,56,000 | 49,27,085 | 59,83,085 |
| 25 | 11,00,000 | 56,70,633 | 67,70,633 |
Scenario 3: A lump sum of Rs 11 lakh for 25 years
A one-time investment of Rs 11 lakh will result in a corpus of approximately Rs 1.87 crore (with an estimated return of Rs 1.76 crore).
ALSO READ: Small SIP, Big Impact: Rs 500 monthly investment for 30 years or Rs 5,000 for 10 years, which do you think works better?
Power of Integration | The bigger the investment over a longer period of time, the bigger the result…
Financial planners often emphasize the importance of investing and staying invested for a long time to obtain compounding power, which is nothing but a process where the interest earned on an investment is reinvested to generate more interest, creating a snowball effect. wealth significantly over time. Learn more about the power of integration
