Accumulating a substantial amount like ₹75 lakhs is a major achievement in building wealth. While various strategies exist, a Systematic Investment Plan (SIP) is often highlighted as a highly effective and structured approach. SIPs not only facilitate regular savings but also enable your money to grow considerably over time.
This article will explore the likelihood of reaching or exceeding ₹75 lakh by consistently investing different amounts per month in an SIP.
Consider a situation where you invest ₹12,500 via SIP each month for 18 years, with an anticipated yearly return of 10%.
At the end of these 18 years, your total investment would have grown to ₹75,69,599. This comprises:
This example effectively demonstrates that by investing regularly and achieving a reasonable rate of return, you can not only reach your target but also exceed it.
Let’s explore a scenario where you invest ₹9,800 every month through a SIP for 18 years, with an anticipated annual return of 12%. This example allows us to see the impact of a slightly lower investment amount over a longer timeframe while maintaining a consistent rate of return.
Under these conditions, the total value of your investment after 18 years would be ₹75,01,305. This comprises:
Even though the total amount you put in is a bit less compared to the first scenario, the improved return rate has a substantial positive impact, resulting in an accumulated wealth significantly exceeding ₹75 lakh.
Building on the previous scenario, let’s consider investing a smaller amount of ₹6,800 per month through a SIP, but with a higher anticipated annual return of 15%, maintained over the same 18-year period. This scenario illustrates how a lower monthly contribution can still lead to a substantial accumulation, provided a higher growth rate is achieved consistently over the long term.
In this case, the estimated total value of your investment after 18 years would be ₹75,08,936. This is broken down as follows:
Here, despite making a considerably lower monthly investment as compared to Scenario 2, you can still cross the ₹75 lakh mark within the same 18-year timeframe. This highlights the significant role that the rate of return plays in achieving long-term financial goals through SIP investing.
Trying to reach a ₹75 crore mark with a SIP? It’s doable, but it’s a two-legged stool; depending on how much you put in and the returns you expect. Those 3 scenarios showed us that SIPs can really turn into serious wealth with steady gains if you stick to the plan.
Just keep in mind, SIPs aren’t magic, and returns can go up and down with the market’s mood. But here’s the takeaway: start early, stay consistent, and you’re setting yourself up to hit those financial goals – including that ₹75 lakh!
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Mar 29, 2025, 9:39 AM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
