How to Reach ₹1 Crore Corpus in 15 Years with SIP

Systematic Investment Plans (SIP) have emerged as one of the most disciplined and consistent ways to build long-term wealth. With a realistic investment amount, a reasonable return assumption and a defined time horizon, reaching a ₹1 crore corpus is not just a dream but a calculable financial goal.

Understanding the Target Corpus of ₹1 Crore

A target corpus of ₹1 crore in 15 years may sound ambitious, but with the power of compounding and regular monthly investments, it is achievable. The concept revolves around consistent contributions, allowing your money to grow over time while earning returns on both the principal and accumulated gains.

SIP Required to Reach ₹1 Crore in 15 Years

To reach the ₹1 crore milestone in 15 years with an assumed annual return of 12%, an investor would need to contribute ₹20,000 per month through SIP. This investment discipline is key, as missing contributions can impact the final corpus significantly.

Expected Growth and Returns: ₹1 Crore Corpus 

By investing ₹20,000 every month for 15 years, the total invested amount will be ₹36,00,000. With an estimated return rate of 12%, the corpus could grow to approximately ₹1,00,91,520. This includes estimated returns of ₹64,91,520 in addition to your principal investment.

Read More:How a ₹15,000 SIP Can Potentially Build an About ₹8 Crore Retirement Corpus!

Role of Compounding in Wealth Creation

The magic of compounding works best when investments are started early and continued without interruption. In SIP, each instalment grows over time and earns returns, which in turn are reinvested to generate more gains. 

Over 15 years, compounding accelerates the growth in the later years, significantly boosting the final corpus. That said, returns are subject to market performance and no returns are guaranteed. 

Conclusion

Investors can use online SIP calculators to estimate their potential returns and adjust their contributions to meet specific goals. These calculators simplify financial planning by showing how small changes in the monthly SIP amount, time period or expected return rate can impact the end result.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 securities are subject to market risks. Read all related documents carefully before investing.