SIP at 25 vs 35: How Much Can ₹10,000 Monthly Grow in 20 Years?

Investing early can impact your investment, thanks to the power of compounding. Let’s see how much a ₹10,000 monthly Systematic Investment Plan (SIP) can grow when started at ages 25 and 35 over a 20-year period, using a SIP calculator to estimate returns.

Starting SIP at 25: The Early Advantage

If you start investing ₹10,000 per month at age 25 and continue for 20 years, assuming an annual return of 12%, the SIP calculator shows your total corpus could grow to around ₹99.9 lakh.

Here, your total investment would be ₹24 lakh (₹10,000 × 12 months × 20 years), while the rest, around ₹75.9 lakh, would come purely from compounding returns.

Starting early allows your investments to benefit from more compounding cycles, giving a boost to your investment.

Starting SIP at 35

If you begin the same ₹10,000 monthly SIP at age 35, investing for 20 years till age 55 with the same 12% annual return, the SIP calculator estimates a corpus of ₹99.9 lakh as well, but the difference lies in the timing.

Since the goal ends at age 55, you lose out on the 10 years of additional time when compared to someone who started earlier. Those extra years can significantly increase your corpus if continued, as the power of compounding grows over time.

Why Timing Matters More Than Amount?

The key difference between starting at 25 versus 35 is not just the corpus amount at the end of 20 years but the opportunity to extend investments. If the 25-year-old continues investing beyond 20 years (for example, till age 55), the corpus can multiply significantly, potentially crossing ₹3 crore over 30 years, compared to the ₹99.9 lakh for someone starting later.

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

Conclusion

The example shows how starting a SIP early, even with the same amount, offers more flexibility and a bigger head start in building wealth. Before starting, investors should use an SIP calculator to estimate returns, align their SIP with their investment objectives, and regularly review performance to make informed decisions.

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.