SIP Returns: Rs 20/day savings can take your corpus to Rs 1.03 crore | See Calculations

Even a student can also create a corpus of more than Rs 1 crore and become rich by investing in SIP. Here's an example of how investing as little as Rs 20 per day can potentially help you create a corpus of Rs 1.03 crore.

SIPs allow you to invest a fixed amount regularly, usually monthly or quarterly, into a mutual fund scheme. The key advantage of SIPs is the ability to harness the power of compounding. By staying invested over a long period, the returns on your investment generate additional earnings, which are reinvested. Over time, this snowball effect can lead to substantial wealth creation.

By saving Rs 20 per day, you contribute Rs 600 per month. Over a span of 36 years, these small, consistent investments can grow into a massive corpus if they earn an annualised return of 15 per cent, which can be achieved in equity mutual fund investments in the long term.

- Monthly investment: Rs 600
- Expected Annual Return Rate: 15%
- Time: 36 years
- Total Amount Invested in 36 years: Rs 2,59,200
- Estimated Return: Rs 1,00,98,349
- Expected corpus at 15% annual returns: Rs 1,03,57,549

The real magic behind this strategy is the compounding effect. While Rs 20 may seem insignificant, when saved and invested consistently over decades, it can generate large returns due to compound growth. The longer you stay invested, the more pronounced this effect becomes.

The key to achieving such a corpus is starting early and staying disciplined. SIPs make investing affordable for everyone, and even small amounts can have a huge impact on your financial future when invested wisely.