How ₹30,000 Monthly SIP Can Build Over ₹4 Crore Retirement Corpus Over Time

If you’re in your mid-twenties and just starting your career, retirement might seem like a faraway concept. But financial experts suggest that this is the perfect time to begin investing, especially in a Systematic Investment Plan (SIP). Thanks to the power of compounding, starting early—say, at age 25—can help you create a massive inflation-adjusted retirement corpus even with modest contributions. In this article, we explore how a 25-year-old investing just Rs 30,000 per month for five years could end up with a corpus worth over Rs 4 crore—or even more—by the time they turn 55.

Why Start Investing at 25?

According to financial planners, your mid-20s offer a golden window for building wealth. At this age, most individuals start earning and can allocate a portion of their salary toward long-term investments. More importantly, the earlier you start, the more time your money gets to grow, thanks to compounding. SIPs in mutual funds provide an easy and disciplined way to get started, requiring as little as Rs 100 per month.

The 5-Year SIP Strategy

Let’s assume a 25-year-old begins a SIP of Rs 30,000 per month and continues it for five years. Over this period, they would have invested Rs 18 lakh in total. Assuming a 12% annualised return, their corpus would grow to approximately Rs 24.33 lakh by the time they turn 30.

At this point, if they simply stop investing and allow the corpus to compound untouched until age 55, the returns could be dramatic. With the same 12% return, the corpus could grow to nearly Rs 4.14 crore by the age of 55.

What If Returns Are Higher?

If the annualised return increases even slightly, the corpus balloons:

Lump Sum Option: Rs 10 Lakh at 25

Alternatively, a one-time investment of Rs 10 lakh at the age of 25 can also deliver strong results. Assuming a 12% annual return, the corpus could grow to nearly Rs 1.7 crore by age 50. While not as large as the SIP option, this approach offers a good option for those who receive a windfall or bonus early in life.

Inflation-Adjusted View

It’s important to factor in inflation. While Rs 4 crore might seem like a huge number today, its purchasing power will be lower in the future. However, even after adjusting for an average inflation rate of 6-7%, a corpus of over Rs 4 crore in 30 years is still considered substantial and can support a comfortable retirement.

What Experts Say

According to experts, the key to building wealth through SIPs is consistency and time. Many investors make the mistake of stopping SIPs prematurely or withdrawing the corpus for short-term needs. The power of compounding works best when investments are left undisturbed for decades.

"Young investors who start early and stay invested for the long term benefit significantly more than those who start later or try to time the market," say leading financial advisors.

Whether you choose to invest monthly through SIPs or make a lump-sum investment, the essential ingredient is time. A modest monthly SIP started at 25, even if stopped after five years, has the potential to grow into a massive retirement corpus if allowed to grow uninterrupted. For young earners, the best gift they can give their future selves is the discipline to invest early.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investment returns are subject to market risks. Readers are advised to consult a certified financial advisor before making any investment decisions.