How to Build a ₹5 Crore Corpus by Age 50 with a Simple SIP Plan

Many people delay retirement planning due to low salaries, busy lifestyles, or lack of knowledge. But the truth is simple: start early and stay patient. Time and compounding are the real wealth builders.

Why SIPs Work Best

A mutual fund SIP is one of the most effective ways to grow wealth. By investing regularly, even small amounts can grow into a large sum. A step-up SIP, where you increase your monthly investment every year, makes compounding even more powerful.

A Practical Investment Journey

Let’s assume you start your career at 22 and begin investing after 3 years of work experience:

• Starting SIP: ₹10,000/month
• Annual increase: 10%
• Expected CAGR: 15%
• Investment period: 25 years (age 25–50)

In the first year, you invest ₹1.2 lakh. With a yearly step-up, your total investment over 25 years comes to around ₹1.18 crore. At 15% CAGR, this grows to ₹5.72 crore.

The Power of Compounding

SIPs not only average out market ups and downs (rupee cost averaging) but also multiply your money through compounding. Returns get added back to your capital, creating even higher returns year after year. Over the decades, this small habit leads to big wealth.

Be Aware of Risks

We have assumed a 15% return based on historical equity fund performance. While many funds have delivered this, future returns can vary. Diversification, fund selection, and risk management are important. Always review your investments regularly.

Read More: SIP Calculator: Start with ₹17,000 a Month for 25 Years—See How It Can Grow! 

Conclusion

A disciplined SIP with a small start, annual step-ups, and long-term patience can help you achieve financial independence. By age 50, you can build a retirement corpus of over ₹5 crore, ensuring a secure and comfortable future.

Use our SIP Calculator to plan smartly and discover how your monthly investments can grow into a ₹10 crore corpus 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. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.