Mutual Fund SIP calculator: How long does it take to become a crorepati with monthly SIPs of ₹5000 or 10,000?
Investing in mutual fund SIPs can help individuals become millionaires (crorepati)
There are various ways for mutual fund (MF) investors to maximise their return. Becoming a crorepati (millionaire) through mutual fund SIPs (Systematic Investment Plans) involves several factors, including the amount invested, the duration of the investment, and the expected rate of return. The longer you invest, the more your money can grow due to compounding. Equity mutual funds have historically provided around 12-15% annual returns.
SIP is a very convenient method for investing in mutual funds. It has gained popularity among Indian mutual fund investors as it promotes disciplined investing.
In this story, using the Step Up SIP calculator, we will explore how many years it will take for an investor to accumulate a corpus of ₹1 crore by investing ₹5000 and ₹10,000 per month, assuming an annualised return of 12% and a 10 per cent annual step up in one's monthly SIP each year.
How long does reaching ₹1 crore corpus with ₹10,000 SIP per month take?
So, assuming an investor invests ₹10,000 per month for 16 years, maintaining a 10 per cent annual step up, the mutual funds' SIP calculator suggests that one's SIP of ₹10,000 would yield ₹1,03,20,258 or ₹1.03 crore. In this assumption, the annual SIP yield has been assumed to be 12 per cent per annum.
In this ₹10,000 monthly SIP for 16 years, along with 10 per cent annual step up, one would be investing ₹43,13,368, whereas its interest would come to around ₹60,06,289.
See the SIP step up calculation below:
How long does reaching ₹1 crore corpus with ₹5000 SIP per month take?
If you invest ₹5000 every month with a step-up of 10% yearly at an average annual return rate of 12% for 21 years, you will accumulate approximately ₹ ₹1,16,36,425 (1.16 crore).
In this ₹5,000 monthly SIP for 21 years, along with a 10 per cent annual step up, one would be investing ₹ 38,40,150 , while the interest amount comes to ₹77,96,275.
See the step-up calculation below:
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Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision
- Investing in mutual fund SIPs can lead to significant wealth accumulation over time.
- A monthly SIP of ₹10,000 for 16 years with a 10% annual step-up can yield over ₹1 crore.
- Starting with smaller amounts, like ₹5,000, can still lead to millionaire status with consistent investments and time.
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