Corpus: ₹35.3L at 12% · Total invested: ₹3.6L · Wealth gain: ₹31.7L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹3,60,000 | ₹15,00,295 | ₹11,40,295 |
| 10% | ₹3,60,000 | ₹22,79,325 | ₹19,19,325 |
| 12% | ₹3,60,000 | ₹35,29,914 | ₹31,69,914 |
| 14% | ₹3,60,000 | ₹55,57,056 | ₹51,97,056 |
| 15% | ₹3,60,000 | ₹70,09,821 | ₹66,49,821 |
A ₹1,000/month SIP is an ideal starting point for first-time investors. At this amount, even on a modest salary, you can build the discipline of consistent investing without straining your monthly budget. A 30-year SIP tenure is where compounding truly transforms wealth. At this horizon, short-term market volatility becomes irrelevant. A ₹1,000/month SIP invested for 30 years turns ₹3.6L of principal into ₹35.3L — a wealth gain of ₹31.7L.
At a 12% annualised return — the long-run historical average for diversified equity mutual funds in India — a ₹1,000/month SIP for 30 years produces a corpus of ₹35.3L. This is enough to fund a solid down payment on a home in a Tier 2 city, full funding for a child's graduation, or a comfortable retirement corpus supplement. Of course, actual returns will vary, but this gives you a realistic benchmark for goal planning.
The power of compounding is clearly visible in this SIP: your ₹3.6L investment grows to ₹35.3L, generating ₹31.7L in wealth gain (881% return on invested capital). Notably, roughly ₹30.3L of your total wealth gain — more than half — is generated in the second half of the 30-year period. This is the compounding snowball effect: the longer you stay invested, the faster your corpus grows.
This table shows how your SIP corpus builds year by year, assuming 12% annual returns — the long-run historical average for diversified equity funds.
| Year | Total Invested | Corpus Value | Wealth Gain |
|---|---|---|---|
| Year 1 | ₹12,000 | ₹12,809 | ₹809 |
| Year 2 | ₹24,000 | ₹27,243 | ₹3,243 |
| Year 3 | ₹36,000 | ₹43,508 | ₹7,508 |
| Year 4 | ₹48,000 | ₹61,835 | ₹13,835 |
| Year 5 | ₹60,000 | ₹82,486 | ₹22,486 |
For a 30-year SIP, you have maximum flexibility to take risk and benefit from long-term compounding: Small Cap Funds — historically highest returns over long horizons (15%+ CAGR), suitable for 20+ year tenures; Mid Cap Funds — strong risk-adjusted returns; Large Cap Index Funds — stable core holding; International/Global Funds — geographic diversification against INR depreciation. A classic allocation: 40% large cap index + 30% mid cap + 20% small cap + 10% international.
Calculate with different amounts, rates, and tenures
Open SIP Calculator →At 12% annual returns, a ₹1,000/month SIP for 30 years gives a maturity corpus of ₹35,29,914. Your total investment is ₹3,60,000 and the wealth gain is ₹31,69,914.
At 8%: ₹15,00,295. At 10%: ₹22,79,325. At 12%: ₹35,29,914. At 15%: ₹70,09,821. Returns are not guaranteed — equity mutual funds can deliver higher or lower depending on market conditions.
SIP returns are subject to capital gains tax. For equity mutual funds held for more than 1 year, gains above ₹1 lakh/year are taxed at 12.5% (LTCG). ELSS SIPs have a 3-year lock-in but qualify for Section 80C deduction up to ₹1.5 lakh/year.
Yes — this is the entire benefit of SIP. When markets fall, your ₹1,000 buys more units at lower prices (rupee cost averaging). Stopping a SIP during a downturn defeats the purpose and locks in temporary losses.
For a 30-year horizon, a diversified equity mutual fund — large cap index fund (Nifty 50 or Sensex) combined with a mid cap fund — is a strong choice. For higher risk appetite, include a small cap fund component.