Power of Compounding: Is your monthly SIP amount Rs 2,000, Rs 4,000, Rs 8,000, or Rs 12,000? See how much wealth you can generate in 15 years

Priya Vishwakarma | Jan 29, 2025, 02:24 PM IST

Power of Compounding: If you're looking for a long-term investment idea to accumulate a substantial corpus for future needs then Systematic Investment Plans (SIPs) in mutual funds can be a good option. It is a market-linked investment option in which investors can invest monthly, quarterly, or annually based on their convenience and capacity. The key to building a substantial fund through SIPs is consistency. In this write-up, we will explain with calculations how much corpus you can accumulate over 15 years with monthly SIP investments of Rs 2,000, Rs 4,000, Rs 8,000, and Rs 12,000.

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

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Assuming an Annualised Return of 12%

Assuming an Annualised Return of 12%

We are assuming an average annual return rate of 12 per cent for these calculations.

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How Much Money Can You Build with Rs 2,000 Monthly SIP Investment in 15 Years?

How Much Money Can You Build with Rs 2,000 Monthly SIP Investment in 15 Years?

With a 12 per cent annual return rate, you can build an approximate corpus of Rs 10,09,152 in 15 years.

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SIP of Rs 2,000 Monthly Investment: Calculations

SIP of Rs 2,000 Monthly Investment: Calculations

- Total Investment: Rs 3,60,000
- Expected Capital Gain: Rs 6,49,152
- Total Corpus Received: Rs 10,09,152

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How Much Money Can You Build with Rs 4,000 Monthly SIP Investment in 15 Years?

How Much Money Can You Build with Rs 4,000 Monthly SIP Investment in 15 Years?

You can build an approximate corpus of Rs 20,18,304 in 15 years if the annual return rate is 12 per cent.

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SIP of Rs 4,000 Monthly Investment: Calculations

SIP of Rs 4,000 Monthly Investment: Calculations

- Total Investment: Rs 7,20,000
- Expected Capital Gain: Rs 12,98,304
- Total Corpus Received: Rs 20,18,304

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How Much Money Can You Build with Rs 8,000 Monthly SIP Investment in 15 Years?

How Much Money Can You Build with Rs 8,000 Monthly SIP Investment in 15 Years?

You can build an approximate corpus of Rs 40,36,608 in 15 years if the annual return rate is 12 per cent.

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SIP of Rs 8,000 Monthly Investment: Calculations

SIP of Rs 8,000 Monthly Investment: Calculations

- Total Investment: Rs 14,40,000
- Expected Capital Gain: Rs 25,96,608
- Total Corpus Received: Rs 40,36,608

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How Much Money Can You Build with Rs 12,000 Monthly SIP Investment in 15 Years?

How Much Money Can You Build with Rs 12,000 Monthly SIP Investment in 15 Years?

With a 12 per cent annual return rate, you can build an approximate corpus of Rs 60,54,912 in 15 years.

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SIP of Rs 12,000 Monthly Investment: Calculations

SIP of Rs 12,000 Monthly Investment: Calculations

- Total Investment: Rs 21,60,000
- Expected Capital Gain: Rs 38,94,912
- Total Corpus Received: Rs 60,54,912

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Important Points to Keep in Mind While Investing in SIP

Important Points to Keep in Mind While Investing in SIP

It should be noted that SIP is a market-linked investment, which means returns are not guaranteed. The calculations above are based on an assumed 12 per cent return, but actual returns can be higher or lower.

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SIPs Benefit from Compounding and Rupee Cost Averaging

SIPs Benefit from Compounding and Rupee Cost Averaging

SIPs benefit from compounding and rupee cost averaging over time, making them a powerful wealth-building tool in the long run.

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