Creating a financial corpus of ₹1 crore may seem like a big goal, but with disciplined investing through a Systematic Investment Plan (SIP), it can be achievable. SIPs allow investors to contribute small amounts regularly into mutual funds, and over time, benefit from the power of compounding. The key variables that determine how much you need to invest monthly are your investment horizon and the expected rate of return.
If you have time on your side, say, 15 years, and you invest in a mutual fund that yields an average annual return of 12%, you will need to invest about ₹20,000 per month to reach the ₹1 crore milestone.
If you start early and have 15 years to invest:
This is an ideal case for young investors. A disciplined investment of ₹20,000/month can help you reach the ₹1 crore target over 15 years.
This is an ideal scenario for young professionals just beginning their careers. With a modest monthly commitment and a long horizon, the compounding effect multiplies your investment substantially. The real advantage here lies in patience and consistency, small, regular investments can grow exponentially over time.
Now consider an investor expecting a lower annual return of 10% and a longer horizon of 20 years. To reach ₹1 crore in this setup, one would need to invest around ₹15,000 per month.
For conservative investors expecting 10% annual returns over 20 years:
This shows how time can compensate for lower returns or smaller monthly contributions. Though the returns are modest, the extended duration allows the money to grow steadily, showing how time in the market often beats timing the market. This scenario works well for cautious investors who prefer stability over high risk.
Investing ₹10,000 per month through a SIP for 21 years at an expected annual return of 12% can help you accumulate a substantial corpus of around ₹1 crore.
Over 21 years, your total contribution would be ₹25.2 lakh, while the remaining ₹88.6 lakh would be the compounded gains.
Also Read: How ₹48 Lakh Can Become ₹6 Crore: The Power of 20% Compounding Through the 20-20-20 SIP Rule!
No matter your age or income, reaching ₹1 crore through SIPs can be possible with the right strategy. You can use an SIP calculator to adjust the monthly amount, tenure, and expected returns as per your financial goals and preferences.
Start early, stay invested, and adjust your SIP as your income grows. The combination of discipline and time can help you turn small monthly savings into significant long-term wealth.
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.
Published on: Jul 15, 2025, 2:15 PM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
