Corpus: ₹2.5L at 12% · Total invested: ₹90K · Wealth gain: ₹1.6L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹90,000 | ₹1,74,173 | ₹84,173 |
| 10% | ₹90,000 | ₹2,08,962 | ₹1,18,962 |
| 12% | ₹90,000 | ₹2,52,288 | ₹1,62,288 |
| 14% | ₹90,000 | ₹3,06,427 | ₹2,16,427 |
| 15% | ₹90,000 | ₹3,38,432 | ₹2,48,432 |
A ₹500/month SIP is an ideal starting point for first-time investors. At this amount, even on a modest salary, you can build the discipline of consistent investing without straining your monthly budget. 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 ₹500/month SIP for 15 years produces a corpus of ₹2.5L. This is enough to fund a solid emergency fund or down payment contribution for a two-wheeler. 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 ₹90K investment grows to ₹2.5L, generating ₹1.6L in wealth gain (180% return on invested capital). Notably, roughly ₹1.9L 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 | ₹6,000 | ₹6,405 | ₹405 |
| Year 2 | ₹12,000 | ₹13,622 | ₹1,622 |
| Year 3 | ₹18,000 | ₹21,754 | ₹3,754 |
| Year 4 | ₹24,000 | ₹30,917 | ₹6,917 |
| Year 5 | ₹30,000 | ₹41,243 | ₹11,243 |
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 ₹500/month SIP for 15 years gives a maturity corpus of ₹2,52,288. Your total investment is ₹90,000 and the wealth gain is ₹1,62,288.
At 8%: ₹1,74,173. At 10%: ₹2,08,962. At 12%: ₹2,52,288. At 15%: ₹3,38,432. 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 ₹500 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.