Corpus: ₹25.2L at 12% · Total invested: ₹9.0L · Wealth gain: ₹16.2L
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹9,00,000 | ₹17,41,726 | ₹8,41,726 |
| 10% | ₹9,00,000 | ₹20,89,621 | ₹11,89,621 |
| 12% | ₹9,00,000 | ₹25,22,880 | ₹16,22,880 |
| 14% | ₹9,00,000 | ₹30,64,269 | ₹21,64,269 |
| 15% | ₹9,00,000 | ₹33,84,315 | ₹24,84,315 |
A ₹5,000/month SIP represents a significant financial commitment — typically suited to professionals with stable incomes looking to build a substantial corpus for major goals like retirement, children's education, or a home purchase. 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 ₹5,000/month SIP for 15 years produces a corpus of ₹25.2L. 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.
The power of compounding is clearly visible in this SIP: your ₹9.0L investment grows to ₹25.2L, generating ₹16.2L in wealth gain (180% return on invested capital). Notably, roughly ₹18.6L 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 | ₹60,000 | ₹64,047 | ₹4,047 |
| Year 2 | ₹1,20,000 | ₹1,36,216 | ₹16,216 |
| Year 3 | ₹1,80,000 | ₹2,17,538 | ₹37,538 |
| Year 4 | ₹2,40,000 | ₹3,09,174 | ₹69,174 |
| Year 5 | ₹3,00,000 | ₹4,12,432 | ₹1,12,432 |
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 ₹5,000/month SIP for 15 years gives a maturity corpus of ₹25,22,880. Your total investment is ₹9,00,000 and the wealth gain is ₹16,22,880.
At 8%: ₹17,41,726. At 10%: ₹20,89,621. At 12%: ₹25,22,880. At 15%: ₹33,84,315. 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 ₹5,000 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.