CALCULATE YOUR SIP RETURNS

Can Investing in SIP Help You Accumulate ₹25 Lakhs in 10 Years?

Written by: Sachin GuptaUpdated on: Mar 20, 2025, 1:35 PM IST
By making an investment of around ₹11,000 per month through an SIP to reach your goal of ₹25 Lakhs in 10 years.
Can Investing in SIP Help You Accumulate ₹25 Lakhs in 10 Years?
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Imagine You’re 30 years old, and in the next decade, you imagine yourself achieving a life-changing financial milestone. Whether it’s funding your child’s higher education, buying your dream home, or securing a comfortable retirement, you know the importance of setting financial goals today for a better tomorrow. But where do you start?

For many people, the solution lies in investing in mutual funds—a powerful tool that can help you grow your wealth steadily over time. With the right strategy, you can accumulate ₹25 Lakhs in 10 years and pave the way for a more secure financial future. But how can you do this, and what should you know about mutual funds?

Let’s dive into the steps, strategies, and essential factors to keep in mind while investing in mutual funds to reach your ₹25 Lakh goal in 10 years.

How Much Should You Invest?

To calculate how much you need to invest each month, we’ll assume the average annual return from mutual funds. Historically, equity mutual funds have given returns of around 12% per year, though past performance is not always indicative of future returns. This is just an assumption for the sake of the example.

Using an online SIP calculator, we can compute the monthly SIP required to accumulate ₹25 Lakhs in 10 years at an assumed return rate of 12%. Here’s how the calculation breaks down:

  • Goal: ₹25,00,000 (₹25 Lakhs)
  • Timeframe: 10 years
  • Assumed Annual Return: 12%

Based on these inputs, you would need to invest around ₹11,000 per month through an SIP to reach your goal of ₹25 Lakhs in 10 years.

Conclusion

Accumulating ₹25 Lakhs in 10 years through mutual funds is entirely achievable with the right strategy. By setting clear goals, investing consistently through SIPs, choosing the right funds, and remaining patient through market fluctuations, you can make this goal a reality.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 20, 2025, 1:35 PM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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