Systematic investment plan, or SIP, is becoming the investment instrument of choice for the average middle-class Indian. According to data released by AMFI (Association for Mutual Funds in India), the mutual fund industry saw remarkable growth in SIPs in October 2024, when a total of 63,69,919 new SIPs were registered. Aided by the continuous tailwind, SIP AUM (assets under management) has reached Rs 13,30,429.83 crore, or more than Rs 13.30 lakh crore.
According to monthly contribution too, the inflow through SIP reached an all-time high of Rs 25,322.74 crore – a 3.32% rise from Rs 24,508.73 crore recorded in September 2024. The increasing tide of investments for years through SIP indicate that something must be right about this mode of investment. Let’s see how SIPs can make you a crorepati starting from scratch.
SIP calculator: A crorepati in 15 years
Assume a 25-year-old begins earning and opens a SIP from the first month. If he/she is diligent enough to invest Rs 12,000 from the very first month and keeps increasing the amount by 10% every year, the SIP will generate an amount of Rs 1,04,20,619 or more than Rs 1.04 crore. One can easily do these calculations with the help of an online step-up SIP calculator. This means even if he/she does not make any other investments, the SIP alone will make him/her a crorepati. Please note that the rate of return that has been assumed in this case is 12%, which is entirely possible with well-chosen equity-linked mutual fund schemes.
A crorepati in 12 years
However, if one wants to make Rs 1 crore from SIP investments alone, one has to raise the amount of investment a bit. If our investor can start with an initial investment of Rs 20,000 and keep raising it annually at 10%, he/she can generate a value of Rs 1,00,48,683 through the mutual fund SIPs.
This SIP can make a crorepati in 10 years flat
The SIP calculator tells us that it is also possible for our investor to become a crorepati in the 10th years by beginning with a higher investment and continue raising it every year by 10%. He/she has to begin with a monthly SIP of Rs 30,000. In this case, the total value generated by the SIP will be Rs 1,01,22,979.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Becoming a crorepati with a systematic investment plan (SIP) in mutual funds is not at all a difficult task. A SIP calculator will tell you how to achieve it. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
