Power of Compounding: How much monthly SIP you need to create Rs 3.5 crore corpus in 15, 20, 25, and 30 years?

Power of Compounding: For beginners, SIP is an easy way to start investing, as it allows first-time investors to begin their wealth-building journey with as little as Rs 100 monthly amount. 

ZeeBiz WebTeam | Feb 07, 2025, 06:44 AM IST

When managing personal finances, investors need to recognise the importance of compounding. Since your investment growth keeps reinvesting in the overall amount, your investments grow faster over time, enabling portfolios to expand significantly. Here you will understand the calculations of how much investing monthly in a systematic investment plan (SIP) you need to create a Rs 3.5 crore corpus in 15, 20, 25, and 30 years.

 

 Image: Pixabay, Freepik

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

 

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What is SIP?

 What is SIP?


A Systematic Investment Plan (SIP) is a disciplined approach to investing a fixed amount in mutual funds at regular intervals. Depending on individual preferences, investors can opt for daily, weekly, monthly, quarterly, or annual SIP contributions.  

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Why opt for SIP?

Why opt for SIP?

For beginners, SIP is an easy way to start investing, as it allows first-time investors to begin their wealth-building journey with as little as Rs 100 monthly amount. The process is hassle-free and convenient, with automated deductions ensuring you never miss an investment opportunity.

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Power of compounding

Power of compounding

Compounding refers to the process where your earnings generate additional returns as they are reinvested, creating a cycle of exponential growth in your investment.  

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Why start investing early?

Why start investing early?

 

Starting early in a SIP maximises the power of compounding, allowing your money to grow exponentially over time. It also helps achieve long-term goals with smaller, consistent investments while beating inflation.

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Benefits of SIP

 Benefits of SIP

SIPs offer multiple advantages, such as disciplined investing, affordability, and the opportunity to harness the power of compounding. They help you build wealth steadily while minimising the risks associated with market volatility through rupee cost averaging.

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How much return you get on SIPs?

How much return you get on SIPs?

There are no fixed returns as they depend on market conditions and the performance of assets where the fund has invested its money. However, it's important to note that SIP returns can fluctuate based on the type of fund (equity, debt, hybrid) and the market's overall performance.

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SIP calculations

SIP calculations

Target corpus: Rs 3.5 crore

Annualised return: 12 per cent 

Investment period: 10, 15, 20, and 25 years

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How much monthly SIP do you need to create Rs 3.5 crore corpus in 10 years?

How much monthly SIP do you need to create Rs 3.5 crore corpus in 10 years?

To generate a Rs 3.5 crore corpus with a 12 per cent return over 10 years, you would need to invest an estimated Rs 1.5 lakh every month. 

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How much monthly SIP you need to create Rs 3.5 crore corpus in 15 years?

How much monthly SIP you need to create Rs 3.5 crore corpus in 15 years?

For a 15-year period, you would need to invest an estimated Rs 69,360 per month at a 12 per cent return to reach a Rs 3.5 crore corpus. 

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How much monthly SIP you need to create Rs 3.5 crore corpus in 20 years?

How much monthly SIP you need to create Rs 3.5 crore corpus in 20 years?

If you're aiming for Rs 3.5 crore in 20 years, a monthly SIP of approximately Rs 35,030 would be required at an 12 per cent return. 

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How much monthly SIP you need to create Rs 3.5 crore corpus in 25 years?

How much monthly SIP you need to create Rs 3.5 crore corpus in 25 years?

To accumulate Rs 3.5 crore over 25 years, you would need to invest approximately Rs 18,440 each month with a 12 per cent return.

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How much monthly SIP you need to create Rs 3.5 crore corpus in 30 years?

How much monthly SIP you need to create Rs 3.5 crore corpus in 30 years?

For a 30-year investment period, a monthly SIP of estimated Rs 9,910 would be sufficient to reach Rs 3.5 crore at a 12 per cent return. 

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