SIP Magic: How Long to Build ₹1.5 Crore Corpus from ₹2,000, ₹4,000, or ₹6,000 Monthly Investments?

MITHUN SAMANTA March 25, 20253

Harnessing the power of compounding through disciplined, long-term investments can transform modest monthly contributions into substantial wealth. By committing to a Systematic Investment Plan (SIP) in mutual funds, even small, regular investments can accumulate into a significant corpus over time.

Understanding the Impact of Monthly SIPs:

₹2,000 Monthly Investment:
- At 12% Annual Return: Achieving a ₹1.5 crore corpus would take approximately 38 years, with a total investment of ₹9.12 lakh and estimated capital gains of ₹1.46 crore.
- At 15% Annual Return: The same corpus could be reached in about 32 years, with a total investment of ₹7.68 lakh and estimated capital gains of ₹1.41 crore.
₹4,000 Monthly Investment:
- At 12% Annual Return: A ₹1.5 crore corpus could be accumulated in approximately 32 years, with a total investment of ₹15.36 lakh and estimated capital gains of ₹1.40 crore.
- At 15% Annual Return: The timeline shortens to about 27 years, with a total investment of ₹13.44 lakh and estimated capital gains of ₹1.56 crore.
₹6,000 Monthly Investment:
- At 12% Annual Return: Reaching a ₹1.5 crore corpus would take around 29 years, with a total investment of ₹20.88 lakh and estimated capital gains of ₹1.43 crore.
- At 15% Annual Return: The target could be met in approximately 25 years, with a total investment of ₹18 lakh and estimated capital gains of ₹1.47 crore.

Key Takeaways:

Start Early: The earlier you begin your investment journey, the more time your money has to compound, reducing the monthly amount needed to reach your financial goals.
Consistency is Crucial: Regular, disciplined investments, regardless of the amount, can lead to substantial wealth accumulation over time.
Optimize Returns: Choosing investment avenues that offer higher annualized returns can significantly shorten the time required to achieve your target corpus.
Increase Contributions When Possible: As your financial situation improves, consider increasing your monthly SIP contributions to expedite wealth creation.

By adhering to these principles and maintaining a long-term perspective, you can effectively leverage the power of compounding to build a substantial financial corpus, ensuring a secure and prosperous future.