SIP Calculator: Want ₹12 Crore Corpus? Start ₹20,000 Monthly SIP & See How Many Years It Takes

Many investors aspire to create significant long-term wealth through disciplined and steady contributions. Among the most trusted tools for this purpose is the Systematic Investment Plan (SIP), which lets individuals channel regular investments into mutual fund schemes. A common financial goal among long-term investors is building a corpus of around Rs 12 crore. This article explores how long it might take to achieve that target with a monthly SIP of Rs 20,000, based on compounding returns.

What Makes SIP A Popular Investment Choice?

Systematic Investment Plans have emerged as a preferred method for individuals looking to invest small amounts regularly without timing the market. Instead of investing a large sum at once, SIPs help investors to gradually build a portfolio over time. SIPs are automated, flexible, and easy to track, allowing individuals to remain disciplined and consistent in their investing approach. One can choose monthly, quarterly, or even daily investment frequency depending on their financial comfort.

SIPs also benefit from rupee-cost averaging, where investors buy more units when the market is down and fewer units when it’s up—averaging the overall purchase cost over time. The power of compounding, when combined with time, plays a vital role in wealth generation.

Goal: Rs 12 Crore – Is It Achievable With Rs 20,000 Monthly?

According to financial experts, building a large corpus like Rs 12 crore isn’t as far-fetched as it seems—provided one starts early and remains consistent. Let’s break down how long it may take to reach the Rs 12 crore milestone by investing Rs 20,000 monthly in a mutual fund SIP, assuming an average annual return of 12%.

After 10 Years Of Rs 20,000 Monthly SIP

If you invest Rs 20,000 each month for a decade, the total investment would stand at Rs 24 lakh. With the assumed return of 12% compounded annually, your corpus would grow to approximately Rs 44.8 lakh. While this is a good start, it still falls significantly short of the Rs 12 crore target, showing that time is a major factor in wealth creation.

After 20 Years Of Investment

Continuing the SIP for 20 years would double your contribution to Rs 48 lakh. Thanks to compounding, your capital gains would increase substantially, taking your total corpus to nearly Rs 1.84 crore. While this is a commendable sum, you're still some distance away from the target.

30-Year Investment Outlook

With three decades of consistent investing, your total contribution reaches Rs 72 lakh. Due to the snowball effect of compounding over a long period, the value of your investments would now cross Rs 6.16 crore. The power of time becomes clearly visible at this stage, where the returns far outpace your invested amount.

Target Reached: Corpus After 36 Years

It is around the 36-year mark that your Rs 20,000 monthly SIP finally crosses the Rs 12 crore milestone. By this point, your total investment would amount to Rs 86.4 lakh. However, the gains from compounding would have soared to over Rs 11.5 crore, pushing the total corpus to around Rs 12.37 crore.

Why Time In The Market Beats Timing The Market

This example underscores a key investing principle—staying invested over the long term delivers better outcomes than attempting to time the market. SIPs reward patience and discipline. The earlier one starts, the better the compounding effect, reducing the effort needed to reach financial goals.

According To Experts

Financial planners often recommend SIPs for salaried individuals and those new to investing due to their simplicity and low barrier to entry. Experts suggest that an investor who begins early, chooses equity-oriented mutual funds with long-term growth potential, and sticks to their SIP without frequent withdrawals can expect favourable outcomes aligned with long-term goals like retirement planning or wealth creation.

Reaching a Rs 12 crore target may sound ambitious, but it becomes realistically achievable with a consistent SIP of Rs 20,000 per month—if started early and maintained for about 36 years. Investors must focus on disciplined investing, choosing the right mutual funds, and staying committed to their long-term goals. As always, consulting with a qualified financial advisor is recommended to align investment strategies with personal financial needs.

Disclaimer: This article is for informational purposes only. Investment returns are subject to market risks. Please consult a SEBI-registered financial advisor before making any investment decision. Calculations are based on assumptions and may vary depending on actual market performance.