₹1 Crore with SIP: Is ₹8,000 Monthly Investment Enough for Over 20 Years?

The idea of turning a small monthly investment of ₹8,000 into ₹1 crore sounds exciting. But is it truly possible? Let’s break down the reality behind this popular goal and understand what it really takes.

Is ₹8,000 the Ideal Amount to Keep Investing?

A monthly SIP of ₹8,000 over 20 years means a total investment of around ₹19.2 lakh. To turn that into ₹1 crore, your money must grow more than 7 times. But this is only possible if your investment earns a Compounded Annual Growth Rate (CAGR) of around 14-15%. This makes the scenario a little unrealistic.

To give more context, India’s benchmark NIFTY 50 has delivered roughly 11.37% returns over 10 years and 12.34% returns over 20 years. So, expecting a 14%-15% CAGR over 20 years is a little ambitious. But if you are worried about your SIP returns, here is what you can do.

How A Step-Up SIP Can Improve Your Chances?

A 10% annual step-up SIP can increase your monthly investment amount every year with income growth. For example, if you start with ₹8,000 and increase it by 10% each year, you may reach ₹1.59 crore at 12% CAGR after 20 years!

Having said that, it’s important to understand that staying invested during market ups and downs, avoiding panic selling, and regularly reviewing your portfolio are essential if you want to maximise your returns. Here are some of the common mistakes you must avoid to reach your ₹1 crore:

• Skipping SIPs during tough times
• Stopping investments when markets fall
• Ignoring inflation—₹1 crore today won't have the same value after 20 years
• Choosing only high-risk funds in the hope of high returns

Read more: India’s Top 6 Large-Cap Mutual Funds by 6-Month SIP Returns Ranked! Check Details Here.

Conclusion

Yes, ₹8,000 SIP can grow into ₹1 crore, but only if the market gives returns at 14-15% compounded annual growth rate. This is rather is unlikely. A more realistic and safer approach is to increase your SIP amount gradually, invest wisely, and stay patient.

The real power lies in discipline, not just high returns. Let compounding and consistency do the magic over time.

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.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.