Feb 3, 2026

Touching 50? How A ₹20,000 SIP Can Build A ₹1 Crore Retirement Corpus

Abhijit Basak

Power Of Starting Even At 50

Beginning a SIP at 50 still offers scope for wealth creation. A 10-year horizon allows compounding to work steadily, especially when contributions are regular and aligned with clear retirement-focused financial goals.

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Why SIPs Suit Late-stage Investors

SIPs encourage disciplined investing and reduce timing risk through regular market participation. This structure helps investors stay invested across market cycles, which is critical when the investment window is relatively shorter.

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Role Of Compounding Over A Decade

Even within 10 years, compounding can significantly enhance wealth. Returns earned on earlier investments continue to generate gains, making consistency more important than attempting short-term market timing.

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Importance Of Annual SIP Step-up

Increasing SIP contributions annually strengthens outcomes. A 20% yearly step-up allows investments to rise with income growth, accelerating corpus building without placing sudden pressure on personal cash flow.

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Expected Returns Used For Illustration

The calculation assumes an annualised return of 12%, reflecting long-term equity mutual fund potential. Actual returns may vary, but this rate is commonly used for conservative long-term planning illustrations.

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How The ₹1 Crore Corpus Is Reached

With disciplined investing, step-ups and assumed returns, total contributions of around ₹62 lakh can potentially grow to nearly ₹1 crore over 10 years, highlighting the combined impact of time and strategy.

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Monthly ₹20,000 Can Add Up Meaningfully

A ₹20,000 monthly SIP may appear modest, but regular contributions build a sizeable invested amount over time. Consistency ensures steady capital deployment without disrupting monthly household finances.

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Managing Risk In The Final Decade

Late-stage investors should balance growth with risk awareness. Asset allocation, fund selection and periodic reviews help ensure volatility does not derail retirement-focused investment objectives.

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Considering Other Asset Classes

Some investors diversify using assets like gold for stability. However, equity-oriented SIPs remain central for growth, while diversification should align strictly with risk tolerance and retirement timelines.

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Disclaimer

This article is for informational purposes only. Mutual fund investments are subject to market risks. Returns are illustrative and not guaranteed. Investors should assess suitability and consult a certified financial adviser before investing.

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Thanks For Reading!

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