Corpus: ₹7.0L at 12% · Total invested: ₹3.6L · Wealth gain: ₹3.4L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹3,60,000 | ₹5,52,497 | ₹1,92,497 |
| 10% | ₹3,60,000 | ₹6,19,656 | ₹2,59,656 |
| 12% | ₹3,60,000 | ₹6,97,017 | ₹3,37,017 |
| 14% | ₹3,60,000 | ₹7,86,274 | ₹4,26,274 |
| 15% | ₹3,60,000 | ₹8,35,972 | ₹4,75,972 |
A ₹3,000/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 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 ₹3,000/month SIP for 10 years produces a corpus of ₹7.0L. This is enough to fund a meaningful contribution toward a car purchase, wedding expenses, or higher education. 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 ₹7.0L, generating ₹3.4L in wealth gain (94% return on invested capital). Notably, roughly ₹4.5L 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 | ₹36,000 | ₹38,428 | ₹2,428 |
| Year 2 | ₹72,000 | ₹81,730 | ₹9,730 |
| Year 3 | ₹1,08,000 | ₹1,30,523 | ₹22,523 |
| Year 4 | ₹1,44,000 | ₹1,85,505 | ₹41,505 |
| Year 5 | ₹1,80,000 | ₹2,47,459 | ₹67,459 |
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 ₹3,000/month SIP for 10 years gives a maturity corpus of ₹6,97,017. Your total investment is ₹3,60,000 and the wealth gain is ₹3,37,017.
At 8%: ₹5,52,497. At 10%: ₹6,19,656. At 12%: ₹6,97,017. At 15%: ₹8,35,972. 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 ₹3,000 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.