SIP for Retirement: Know How Much Monthly Investment Might Build a ₹1 Crore Corpus in 30 Years

Systematic Investment Plans (SIPs) are a disciplined way to invest regularly in mutual funds. When started early and maintained consistently, SIPs can help individuals accumulate a retirement corpus, thanks to the power of compounding over the long term.

Let’s explore what monthly SIP amount may be required to build a corpus of ₹1 crore over a 30-year investment horizon, assuming a 12% annual return.

SIP Calculator Results: ₹1 Crore Corpus in 30 Years

When we run the numbers through a SIP calculator, here’s what it shows:

• Target Corpus: ₹1 crore
• Investment Duration: 30 years
• Expected Rate of Return: 12% annually
• Required Monthly SIP Amount: ₹3,000 (approx.)
• Total Invested Over 30 Years: ₹10,80,000
• Estimated Returns: ₹95,09,741
• The total value of your investment after 30 Years will be: ₹ 1,05,89,741

Note: The assumed 12% return is based on historical performance of equity mutual funds, particularly those tracking benchmark indices like the Sensex or Nifty. However, actual returns can vary depending on market cycles, fund selection, and macroeconomic factors. Conservative investors might consider using lower return assumptions such as 8% or 10% for a more cautious projection.

How SIPs Work Over Time?

SIPs allow investors to contribute a fixed amount regularly—typically monthly—into mutual fund schemes. Over time, this method benefits from rupee cost averaging, where more units are bought when prices are low and fewer when prices are high. Additionally, long-term investments benefit from compound growth, where returns generate further returns over the years.

Key Takeaways

• A monthly SIP of approximately ₹3,000 over 30 years may accumulate a corpus of around ₹1 crore, assuming a 12% annual return.
• The assumed 12% return is based on past average performance of equity mutual funds; actual results may differ.
• Long-term SIPs can benefit from compounding and rupee cost averaging, but are also subject to market risks and fluctuations.

Read More: SIP Calculator: How ₹13,000 Monthly SIP Can Grow Over 10 Yrs vs 20 Yrs vs 30 Yrs.

Conclusion

Building a corpus of ₹1 crore through SIPs is a goal that may be achievable with regular investing, a long investment horizon, and favourable market conditions. However, the degree of impact depends on actual return rates, inflation trends, and market performance.

These comparisons highlight the importance of understanding how different choices may affect the long-term value of money. As always, reviewing financial plans periodically and aligning them with evolving needs and risk preferences can help investors stay informed and prepared.

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.