Often investors feel that it is not possible to create a big fund without big capital. But SIP in mutual funds completely changes this thinking. Regular investment over a long period of time can turn even a small amount into a big one.

Let us understand how long it will take to build a corpus of ₹5 lakh from a monthly SIP of ₹1,000 and how the investment mathematics changes at 10%, 12% and 15% returns.

Why SIP is the easiest way for long-term investment

A fixed amount is invested every month in Systematic Investment Plan i.e. SIP. This maintains discipline in investment and reduces the impact of market fluctuations.

The biggest advantage is compounding, which grows your capital exponentially over time.

How compounding works in SIP

In SIP:

• Earlier investments get more time


• Each new installment adds to the already deposited amount


• The pace of returns increases as time increases

That is why it is most important to start early.

What will happen at 10% annual return?

If your SIP gives an average annual return of 10%, then it will take approximately Rs. 5 lakh to build a fund. 16 years 6 months Will take.

• Monthly Investment: ₹1,000


• total investment: Around ₹1.98 lakh


• Amount Earned: More than ₹3 lakh

These returns are generally seen in balanced or conservative equity funds.

How long will it take for a 12% annual return?

This target is close to an average return of 12%. 15 years Can be completed in.

• total investment: Approximately ₹1.80 lakh


• Total Fund Value: ₹5 lakh

12% returns are considered viable for equity mutual funds in the long run.

What difference will it make if you get 15% annual returns?

If the market performs well and gets 15% annual returns, a fund of ₹5 lakh will be worth around 13 years 3 months Can be made in.

• total investment: Approximately ₹1.59 Lakh


• Amount made from returns: More than ₹3.40 lakh

However, with higher returns comes higher volatility.

Complete calculation at a glance

Biggest lesson for investors

The amount may be small, but the time should be big. Delaying SIP leads to more investment to achieve the same goal.

Keep these things in mind while doing SIP

• Decide the investment objective first


• The sooner you start, the more you will benefit


• Do not stop SIP when the market falls


• Do not take excessive risk in the greed for higher returns


• Review investments once a year

A SIP of ₹1,000 may seem modest, but time and compounding can turn it into a strong financial fund. Only investment done with discipline and patience leads to success in the long run.