Corpus: ₹23.2L at 12% · Total invested: ₹12.0L · Wealth gain: ₹11.2L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹12,00,000 | ₹18,41,657 | ₹6,41,657 |
| 10% | ₹12,00,000 | ₹20,65,520 | ₹8,65,520 |
| 12% | ₹12,00,000 | ₹23,23,391 | ₹11,23,391 |
| 14% | ₹12,00,000 | ₹26,20,914 | ₹14,20,914 |
| 15% | ₹12,00,000 | ₹27,86,573 | ₹15,86,573 |
A ₹10,000/month SIP represents a significant financial commitment — typically suited to professionals with stable incomes looking to build a substantial corpus for major goals like retirement, children's education, or a home purchase. A 10-year SIP tenure gives equity mutual funds enough time to ride out market cycles and deliver meaningful compounding. Most financial planners recommend a minimum of 10 years for equity SIPs to allow volatility to average out.
At a 12% annualised return — the long-run historical average for diversified equity mutual funds in India — a ₹10,000/month SIP for 10 years produces a corpus of ₹23.2L. 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 ₹12.0L investment grows to ₹23.2L, generating ₹11.2L in wealth gain (94% return on invested capital). Notably, roughly ₹15.0L of your total wealth gain — more than half — is generated in the second half of the 10-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 | ₹1,20,000 | ₹1,28,093 | ₹8,093 |
| Year 2 | ₹2,40,000 | ₹2,72,432 | ₹32,432 |
| Year 3 | ₹3,60,000 | ₹4,35,076 | ₹75,076 |
| Year 4 | ₹4,80,000 | ₹6,18,348 | ₹1,38,348 |
| Year 5 | ₹6,00,000 | ₹8,24,864 | ₹2,24,864 |
For a 10-year SIP, equity funds are well-suited: Large Cap Index Funds (Nifty 50/Sensex) — lowest cost, market-matching returns; Flexi Cap Funds — diversification across market caps; Mid Cap Funds — higher potential returns with moderate risk; ELSS Funds — doubles as tax-saving under Section 80C (up to ₹1.5L/year). Diversify across 2-3 fund categories for balanced risk management.
Calculate with different amounts, rates, and tenures
Open SIP Calculator →At 12% annual returns, a ₹10,000/month SIP for 10 years gives a maturity corpus of ₹23,23,391. Your total investment is ₹12,00,000 and the wealth gain is ₹11,23,391.
At 8%: ₹18,41,657. At 10%: ₹20,65,520. At 12%: ₹23,23,391. At 15%: ₹27,86,573. 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 ₹10,000 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 10-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.