How a ₹5,000 Monthly SIP Started This Diwali Can Grow by 2030?

Diwali is often considered a time for new beginnings and financial planning. One of the widely discussed investment strategies is a Systematic Investment Plan (SIP) in mutual funds. 

SIPs allow investors to contribute a fixed amount at regular intervals, usually monthly, which is then invested in mutual fund units. Over time, this structured investment approach can help accumulate a significant corpus due to compounding and rupee-cost averaging, even if the monthly contribution seems modest.

Investment and Expected Growth

Consider a monthly SIP of ₹5,000 starting this Diwali (October 2025) and continuing for five years, until Diwali 2030. The total principal invested over this period would be:

₹5,000 × 12 months × 5 years = ₹3,00,000

The potential corpus at the end of five years depends on the annualised returns from the mutual fund. Using standard SIP calculations:

• At 10% annualised return: The monthly contributions and reinvested returns combine to create a corpus of ~₹3,90,412. This means that while ₹3,00,000 was actually invested, the returns earned over five years account for about ₹90,000, which is the growth generated purely from compounding.
• At 12% annualised return: The corpus could reach around ₹4,12,432. Here, the same ₹3,00,000 investment benefits from slightly higher returns each year, resulting in ₹1,12,000 generated from returns over the five-year period.

These projections assume consistent monthly investments without withdrawals. The growth is driven by compounding, where returns earned each month are reinvested and generate additional returns in subsequent months. Additionally, SIPs provide the benefit of rupee-cost averaging, which means investors buy more units when prices are lower and fewer units when prices are higher, effectively averaging out the cost per unit over time.

Also Read: SIP for Down Payment vs Full Property Purchase – Which Goal Works Better?

Conclusion

A ₹5,000 monthly SIP started this Diwali would involve a total investment of ₹3,00,000 over five years. Depending on market performance and expected annual returns of 10–12%, the accumulated corpus by Diwali 2030 could range between ₹3.90 lakh and ₹4.12 lakh. Tools like SIP calculators provide factual estimates of potential growth, showing how regular investments combined with compounding and rupee-cost averaging can lead to meaningful wealth creation 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.