Corpus: ₹1.3Cr at 12% · Total invested: ₹45.0L · Wealth gain: ₹81.1L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹45,00,000 | ₹87,08,629 | ₹42,08,629 |
| 10% | ₹45,00,000 | ₹1,04,48,107 | ₹59,48,107 |
| 12% | ₹45,00,000 | ₹1,26,14,400 | ₹81,14,400 |
| 14% | ₹45,00,000 | ₹1,53,21,344 | ₹1,08,21,344 |
| 15% | ₹45,00,000 | ₹1,69,21,577 | ₹1,24,21,577 |
A ₹25,000/month SIP is a high-conviction investment. At this scale, the power of compounding works dramatically in your favour — over 15 years at 12%, your total investment of ₹45.0L grows to ₹1.3Cr, a 2.8× multiplier. A 15-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 ₹25,000/month SIP for 15 years produces a corpus of ₹1.3Cr. 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 ₹45.0L investment grows to ₹1.3Cr, generating ₹81.1L in wealth gain (180% return on invested capital). Notably, roughly ₹93.1L of your total wealth gain — more than half — is generated in the second half of the 15-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 | ₹3,00,000 | ₹3,20,233 | ₹20,233 |
| Year 2 | ₹6,00,000 | ₹6,81,080 | ₹81,080 |
| Year 3 | ₹9,00,000 | ₹10,87,691 | ₹1,87,691 |
| Year 4 | ₹12,00,000 | ₹15,45,871 | ₹3,45,871 |
| Year 5 | ₹15,00,000 | ₹20,62,159 | ₹5,62,159 |
For a 15-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 ₹25,000/month SIP for 15 years gives a maturity corpus of ₹1,26,14,400. Your total investment is ₹45,00,000 and the wealth gain is ₹81,14,400.
At 8%: ₹87,08,629. At 10%: ₹1,04,48,107. At 12%: ₹1,26,14,400. At 15%: ₹1,69,21,577. 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 ₹25,000 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 15-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.