Mutual Fund SIP: Become a Crorepati with just 15000 rupees SIP! Know how much time it will take?

Mutual Fund SIP: Becoming a crorepati is a cherished dream for many Indians as it signifies ultimate financial stability. Reaching the milestone of the first crore is often viewed as a key long-term financial goal. While the figure may seem distant to many, consistent effort and disciplined investing can make this attainable.

One of the most popular tools for long-term wealth creation is Mutual Funds. Whether through small monthly investments (SIP) or a large lump sum amount, one can achieve this goal. Historically, equity-oriented mutual funds have been known to deliver at least 12% annual returns. Let’s analyze how a monthly SIP of Rs 15,000 versus a lump sum investment of Rs 3 Lakh can help you reach the Rs 1 Crore mark.

Rs 15,000 Monthly SIP Investment

For those who prefer a disciplined approach, a monthly SIP of Rs 15,000 is a powerful tool. Assuming an expected annual return of 12%, it would take approximately 17 years to build a corpus of Rs 1 Crore.

• SIP Amount: Rs 15,000
• Expected Rate of Return: 12%
• Time Required: 17 years
• Total Invested Amount: Rs 30,60,000
• Estimated Returns: Rs 69,58,812
• Total Value: Rs 1,00,18,812

As seen above, by contributing around Rs 30.60 Lakh over 17 years, the power of compounding grows the wealth to over Rs 1 Crore.

Rs 3 Lakh Lump Sum Investment

If you have a lump sum amount to invest, you can also aim for the crorepati tag, but the duration significantly increases if the principal amount is smaller. A one-time investment of Rs 3 Lakh will take about 31 years to grow into Rs 1 Crore at a 12% return rate.

• Investment Amount: Rs 3,00,000
• Expected Rate of Return: 12%
• Investment Duration: 31 years
• Invested Amount: Rs 3,00,000
• Estimated Returns: Rs 97,66,533
• Total Value: Rs 1,00,66,533

SIP vs. Lump Sum Comparison

Here is a quick comparison of both investment strategies to help you understand the difference in time and contribution:

Conclusion

Monthly investments allow investors to practice a disciplined financial habit without straining their daily budget. It also helps in reducing the risk of market volatility through Rupee Cost Averaging. On the other hand, lump-sum investments benefit from the accelerated power of compounding but require a longer horizon if the starting capital is low. Investors can also use lump-sum opportunities to supplement their regular investment journey.

Disclaimer: Mutual Fund investments are subject to market risks. Investors are advised to consult their financial goals with a certified expert to avoid mistakes and make informed decisions. This article is for informational purposes only.