Magic of Rs 5,000 SIP: How many years will it take to generate Rs 3 crore with Rs 5,000 monthly investment?

Investing just Rs 5,000 per month might sound like a small start, but when combined with Systematic Investment Plans (SIPs) and compounding, it can turn into a large corpus of Rs 3 crore. Let’s understand how soon you can reach this milestone with disciplined investing. 

Anamika Singh | Nov 20, 2024, 02:27 PM IST

Saving and investing regularly can help individuals build significant wealth over time. Through a Systematic Investment Plan (SIP), even a small amount like Rs 5,000 per month combined with the power of compounding can help investors achieve financial milestones. In this article, we’ll explore how long it takes to reach the goal of Rs 3 crore corpus with Rs 5,000 monthly SIP. 

Photos source: Pixabay/Representational

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)

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Understanding SIP

Understanding SIP

A Systematic Investment Plan (SIP) is a simple and disciplined way to invest in mutual funds. It allows individuals to invest a fixed amount of money at regular intervals, be it daily, weekly, monthly, quarterly, or yearly.

 

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Why choose SIP?

Why choose SIP?

Affordable: Individuals can start with a small amount, making it accessible for everyone.
Convenient: Automated deductions mean you don’t have to worry about remembering to invest.
Flexible: Individuals can increase or decrease the investment amount or stop the SIP at any time.

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Start early, stay consistent

Start early, stay consistent

The earlier one starts, the more time their money gets to grow. For example, beginning in your 20s can reduce the years of investment to reach your goal.

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Simple and beginner-friendly

Simple and beginner-friendly

SIP is ideal for beginners, by investing small amounts regularly, first-time investors can start their journey toward building a large corpus. 

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Calculation for potential corpus investors can build with Rs 5,000 monthly SIP for 10 years

Calculation for potential corpus investors can build with Rs 5,000 monthly SIP for 10 years

Investment period: 10 years
Monthly investment: Rs 5,000
Target corpus: Rs 3,00,00,000
If investors invest Rs 5,000 monthly in mutual fund SIP for 10 years, they can accumulate an estimated corpus of Rs 11,61,695. 

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Calculation for potential corpus investors can build with Rs 5,000 monthly SIP for 20 years

Calculation for potential corpus investors can build with Rs 5,000 monthly SIP for 20 years

Investment period: 20 years
Monthly investment: Rs 5,000
Target corpus: Rs 3,00,00,000
If investors invest Rs 5,000 monthly in a mutual fund SIP for 20 years, they can accumulate an estimated corpus of Rs 49,95,740.

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Calculation for potential corpus investors can build with Rs 5,000 monthly SIP for 35 years

Calculation for potential corpus investors can build with Rs 5,000 monthly SIP for 35 years

Investment period: 35 years
Monthly investment: Rs 5,000
Target corpus: Rs 3,00,00,000
If investors invest Rs 5,000 monthly in a mutual fund SIP for 35 years, they can accumulate an estimated corpus of Rs 3,24,76,345.

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How much estimated returns investors can get by investing Rs 5,000 monthly in mutual fund SIP for 10 years?

How much estimated returns investors can get by investing Rs 5,000 monthly in mutual fund SIP for 10 years?

Invested amount: Rs 6,00,000 (in 10 years)
Estimated returns: Rs 5,61,695

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How much estimated returns investors can get by investing Rs 5,000 monthly in mutual fund SIP for 20 years?

How much estimated returns investors can get by investing Rs 5,000 monthly in mutual fund SIP for 20 years?

Invested amount: Rs 12,00,000 (in 20 years)
Estimated returns: Rs 37,95,740

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How much estimated returns do investors get by investing Rs 5,000 monthly in mutual fund SIP for 35 years?

How much estimated returns do investors get by investing Rs 5,000 monthly in mutual fund SIP for 35 years?

Invested amount: Rs 21,00,000 (in 35 years)
Estimated returns: Rs 3,03,76,345

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