Investing ₹10,000 monthly through a Systematic Investment Plan (SIP) in equity mutual funds can lead to substantial wealth over time, thanks to the power of compounding. However, accumulating a corpus of ₹5.80 crore requires long-term discipline, consistency, and an optimal rate of return.
If you’ve come across schemes promising enormous wealth through SIP investments, you may wonder whether it is possible and, more importantly, whether there’s still a chance for you to achieve this financial milestone. Let’s break it down.
Investment Scheme
| Feature | Details |
|---|---|
| Monthly Investment | ₹10,000 |
| Target Corpus | ₹5.80 Crore |
| Investment Duration | 25 – 30 Years |
| Expected Annual Returns | 12% – 15% |
| Example Fund | Canara Robeco Equity Hybrid Fund |
| Key Strategy | Long-term SIP, consistency, and equity exposure |
| Official Source | SEBI |
Building ₹5.80 crore by investing ₹10,000 per month is achievable with long-term commitment, disciplined SIPs, and the right mutual fund choices.
- Start as early as possible.
- Stay consistent and patient.
- Choose funds with strong historical performance.
- Keep a realistic return expectation (~12%-15%).
By following these steps, you can turn your small monthly investments into a fortune!
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Investment Scheme: How to Achieve ₹5.80 Crore with ₹10,000 SIP?
The key to building substantial wealth through SIP investments is time and returns. Let’s analyze the numbers based on different investment horizons and expected returns:
Required Annual Returns Over Time
- 30 Years: You need an annual return of 12% to accumulate ₹5.80 crore.
- 25 Years: You need an annual return of 15% to reach the target.
- 20 Years: You need a higher return of 19%, which is risky and less predictable.
Understanding Compounding in SIP
A Systematic Investment Plan (SIP) benefits from rupee cost averaging and the power of compounding. The longer your investment horizon, the more your money compounds, multiplying your wealth over decades.
Historical Performance of Mutual Funds
Several equity mutual funds have delivered annual returns in the range of 12% to 16% over 20-30 years. A great example is:
Canara Robeco Equity Hybrid Fund: A ₹10,000 SIP in this fund since its inception has grown to ₹5.80 crore over 32 years, offering a 13.90% CAGR (as of Dec 31, 2024). (Source)
Investment Scheme: Why Long-Term SIPs Work?
Power of Compounding
Compounding allows your returns to generate further returns, leading to exponential growth over time. The earlier you start, the bigger your wealth accumulation.
Rupee Cost Averaging
Investing a fixed amount every month ensures you buy more units when the market is low and fewer units when the market is high, reducing risk.
Beating Inflation
Equity investments, particularly in large-cap and diversified funds, tend to outpace inflation over long periods, preserving and growing your purchasing power.
Investment Scheme: Step-by-Step Guide to Reaching ₹5.80 Crore
Start Early & Stay Consistent
- If you start investing at 25, you’ll have 35+ years to grow your money.
- Even if you start later, long-term consistency is key.
Choose the Right Mutual Funds
- Opt for equity mutual funds with a strong long-term track record.
- Recommended fund categories:
- Large-Cap Funds (Low-risk, stable returns)
- Flexi-Cap Funds (Balanced growth potential)
- Index Funds (Passive, low-cost investing)
Stay Invested in Market Cycles
- Don’t stop SIPs during market downturns.
- SIPs work best when you stay invested during volatility.
Increase SIP Amount Over Time
- A step-up SIP (increasing SIP by 10% annually) can accelerate wealth accumulation.
- Example: Starting with ₹10,000 and increasing by 10% every year reduces the investment duration.
Use SIP Calculators for Planning
- Utilize SIP calculators to estimate returns based on different rates of return.
- Check out AMFI SIP Calculator (link) for accurate projections.
Investment Scheme (FAQs)
Can I Still Achieve ₹5.80 Crore If I Start Late?
Yes, but you may need to:
Increase your SIP amount (e.g., ₹20,000 instead of ₹10,000).
Extend your investment duration beyond 30 years.
Are 12%-15% Returns Realistic?
Historically, Nifty 50 and Sensex have delivered 12%-15% CAGR over 30+ years. While not guaranteed, long-term equity investments tend to offer these returns.
Is There Any Risk in SIPs?
Yes, SIPs in equity mutual funds are market-linked and subject to volatility.
However, long-term investing mitigates short-term fluctuations.
Which SIP Funds Are Best for This Strategy?
Some historically high-performing mutual funds:
Mirae Asset Large Cap Fund
Canara Robeco Equity Hybrid Fund
Parag Parikh Flexi Cap Fund
Always check SEBI-registered sources like Moneycontrol before investing.
