Corpus: ₹1.8Cr at 12% · Total invested: ₹18.0L · Wealth gain: ₹1.6Cr
| Annual Return | Total Invested | Maturity Value | Wealth Gain |
|---|---|---|---|
| 8% | ₹18,00,000 | ₹75,01,476 | ₹57,01,476 |
| 10% | ₹18,00,000 | ₹1,13,96,627 | ₹95,96,627 |
| 12% | ₹18,00,000 | ₹1,76,49,569 | ₹1,58,49,569 |
| 14% | ₹18,00,000 | ₹2,77,85,278 | ₹2,59,85,278 |
| 15% | ₹18,00,000 | ₹3,50,49,103 | ₹3,32,49,103 |
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 30-year SIP tenure is where compounding truly transforms wealth. At this horizon, short-term market volatility becomes irrelevant. A ₹5,000/month SIP invested for 30 years turns ₹18.0L of principal into ₹1.8Cr — a wealth gain of ₹1.6Cr.
At a 12% annualised return — the long-run historical average for diversified equity mutual funds in India — a ₹5,000/month SIP for 30 years produces a corpus of ₹1.8Cr. 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 ₹18.0L investment grows to ₹1.8Cr, generating ₹1.6Cr in wealth gain (881% return on invested capital). Notably, roughly ₹1.5Cr 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 | ₹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 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 ₹5,000/month SIP for 30 years gives a maturity corpus of ₹1,76,49,569. Your total investment is ₹18,00,000 and the wealth gain is ₹1,58,49,569.
At 8%: ₹75,01,476. At 10%: ₹1,13,96,627. At 12%: ₹1,76,49,569. At 15%: ₹3,50,49,103. 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 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.