CALCULATE YOUR SIP RETURNS

Planning SIP Investment for the Long Term? See What a ₹20,000 SIP Could Build Over 2 Decade

Written by: Neha DubeyUpdated on: 4 Aug 2025, 9:11 pm IST
Thinking of investing ₹20,000 every month for the next 20 years? Here's a look at how the numbers add up based on an assumed annual return of 12%.
Planning SIP Investment for the Long Term? See What a ₹20,000 SIP Could Build Over 2 Decade
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When planning for long term financial goals, understanding the potential growth of consistent investments can be helpful.

A Systematic Investment Plan (SIP) allows individuals to invest fixed amounts regularly in mutual funds, and over time, these contributions may compound into a sizeable corpus depending on various factors like tenure, amount, and market performance.

SIP Investment Overview

Let’s say an investor commits to investing ₹20,000 every month for 20 years. Assuming an expected annual rate of return of 12% (based on historical long-term average returns from certain diversified equity funds), here’s how the investment might look when you plug in the number in an SIP Calculator:

  • Monthly SIP: ₹20,000
  • Total Duration: 20 years
  • Total Invested Amount: ₹48,00,000
  • Estimated Return Amount: ₹1,51,82,958
  • Total Corpus at the End of 20 Years: ₹1,99,82,958

Note: This projection assumes a consistent monthly investment and return, which in reality may vary due to market conditions.

Why Duration and Consistency Matter?

The 20-year horizon plays a critical role in allowing returns to compound. While ₹48 lakh is invested over this period, the remaining ₹1.5 crore in the estimated corpus comes from reinvested returns.

A Note on Assumptions

This example assumes a 12% annual return, which is not guaranteed and can fluctuate based on market dynamics, fund choice, and economic factors. The actual outcome could be higher or lower.

It's important to review SIPs periodically and understand the nature of mutual funds and the risks involved. Diversification, asset allocation, and your personal financial goals all play a role in shaping long-term results.

Read More: How a ₹25,000 Monthly SIP for 5 Years Could Grow Over 30 Years Without Additional Investment.

Conclusion

While this example offers a simplified look at what a ₹20,000 monthly SIP might achieve over 20 years, it's best used as a starting point for understanding the impact of regular, long-term investing. Planning with realistic expectations and revisiting those plans regularly can help align your strategy with changing goals and financial conditions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. 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. 

Published on: Aug 4, 2025, 3:39 PM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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