Corpus: ₹12.4L at 12% · Total invested: ₹9.0L · Wealth gain: ₹3.4L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹9,00,000 | ₹11,09,501 | ₹2,09,501 |
| 10% | ₹9,00,000 | ₹11,71,236 | ₹2,71,236 |
| 12% | ₹9,00,000 | ₹12,37,295 | ₹3,37,295 |
| 14% | ₹9,00,000 | ₹13,08,011 | ₹4,08,011 |
| 15% | ₹9,00,000 | ₹13,45,225 | ₹4,45,225 |
A ₹15,000/month SIP is a high-conviction investment. At this scale, the power of compounding works dramatically in your favour — over 5 years at 12%, your total investment of ₹9.0L grows to ₹12.4L, a 1.4× multiplier. A 5-year SIP horizon is relatively short for equity investing. While it can deliver decent returns, it also carries more market risk compared to longer tenures. At this horizon, debt funds, liquid funds, or hybrid funds may be more appropriate than pure equity.
At a 12% annualised return — the long-run historical average for diversified equity mutual funds in India — a ₹15,000/month SIP for 5 years produces a corpus of ₹12.4L. 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.
Over 5 years, your total investment of ₹9.0L grows to ₹12.4L, generating ₹3.4L in wealth gain — a 37% return on invested capital. For short tenures like this, the bulk of returns come from market performance rather than compounding, which is why fund selection and avoiding premature redemption matter more here.
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 | ₹1,80,000 | ₹1,92,140 | ₹12,140 |
| Year 2 | ₹3,60,000 | ₹4,08,648 | ₹48,648 |
| Year 3 | ₹5,40,000 | ₹6,52,615 | ₹1,12,615 |
| Year 4 | ₹7,20,000 | ₹9,27,523 | ₹2,07,523 |
| Year 5 | ₹9,00,000 | ₹12,37,295 | ₹3,37,295 |
For a 5-year SIP, consider these fund categories: Hybrid/Balanced Advantage Funds — dynamically allocate between equity and debt to manage downside risk; Short Duration Debt Funds — lower volatility for capital preservation; Liquid Funds — if your horizon might be shorter than planned. Avoid high-risk small-cap or sectoral funds at this tenure as there may not be enough time to recover from market drawdowns.
Calculate with different amounts, rates, and tenures
Open SIP Calculator →At 12% annual returns, a ₹15,000/month SIP for 5 years gives a maturity corpus of ₹12,37,295. Your total investment is ₹9,00,000 and the wealth gain is ₹3,37,295.
At 8%: ₹11,09,501. At 10%: ₹11,71,236. At 12%: ₹12,37,295. At 15%: ₹13,45,225. 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 ₹15,000 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 5-year horizon, balanced advantage funds or hybrid funds are recommended over pure equity to manage downside risk. Pure equity funds need at least 7-10 years to smooth out volatility.