Corpus: ₹70.6L at 12% · Total invested: ₹7.2L · Wealth gain: ₹63.4L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹7,20,000 | ₹30,00,590 | ₹22,80,590 |
| 10% | ₹7,20,000 | ₹45,58,651 | ₹38,38,651 |
| 12% | ₹7,20,000 | ₹70,59,828 | ₹63,39,828 |
| 14% | ₹7,20,000 | ₹1,11,14,111 | ₹1,03,94,111 |
| 15% | ₹7,20,000 | ₹1,40,19,641 | ₹1,32,99,641 |
A ₹2,000/month SIP is a solid commitment that many salaried professionals can sustain comfortably. At this level, you are investing seriously enough to build meaningful wealth over time. A 30-year SIP tenure is where compounding truly transforms wealth. At this horizon, short-term market volatility becomes irrelevant. A ₹2,000/month SIP invested for 30 years turns ₹7.2L of principal into ₹70.6L — a wealth gain of ₹63.4L.
At a 12% annualised return — the long-run historical average for diversified equity mutual funds in India — a ₹2,000/month SIP for 30 years produces a corpus of ₹70.6L. This is enough to fund a substantial retirement nest egg or full funding for a child's MBA/medical education (including abroad), or an outright property purchase in many Indian cities. 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 ₹7.2L investment grows to ₹70.6L, generating ₹63.4L in wealth gain (881% return on invested capital). Notably, roughly ₹60.5L 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 | ₹24,000 | ₹25,619 | ₹1,619 |
| Year 2 | ₹48,000 | ₹54,486 | ₹6,486 |
| Year 3 | ₹72,000 | ₹87,015 | ₹15,015 |
| Year 4 | ₹96,000 | ₹1,23,670 | ₹27,670 |
| Year 5 | ₹1,20,000 | ₹1,64,973 | ₹44,973 |
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 ₹2,000/month SIP for 30 years gives a maturity corpus of ₹70,59,828. Your total investment is ₹7,20,000 and the wealth gain is ₹63,39,828.
At 8%: ₹30,00,590. At 10%: ₹45,58,651. At 12%: ₹70,59,828. At 15%: ₹1,40,19,641. 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 ₹2,000 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.