Make Your First Crore with SIP; Here’s How Investing ₹20,000 Monthly Can Help You Achieve It

In the journey of wealth creation, reaching your first crore is a significant milestone. While there are several ways to grow your wealth, one of the most effective and disciplined methods is through a Systematic Investment Plan (SIP). Not only does it allow you to save regularly, but it also helps your money grow at attractive rates over time. In this article, we’ll examine the probability of making ₹1 crore or more by investing ₹20,000 per month in SIP.

Scenario 1: Expected Return of 12% Over 15 Years

Let’s explore the first scenario where you invest ₹20,000 every month for 15 years at an expected annual return of 12%.

• SIP Amount: ₹20,000
  
• Expected Return: 12% per annum
  
• Investment Period: 15 years
  

After 15 years, the total value of your investment will be ₹1,00,91,520. Here’s the breakdown:

• Invested Amount: ₹36,00,000
  
• Estimated Returns: ₹64,91,520
  

This scenario clearly shows that with consistent investing and a decent return rate, you can not only meet your goal but also surpass it.

Scenario 2: Expected Return of 15% Over 14 Years

Now, let’s consider a slightly higher return rate of 15% over a shorter period of 14 years. A higher return can accelerate wealth creation, but it comes with higher risks.

• SIP Amount: ₹20,000
  
• Expected Return: 15% per annum
  
• Investment Period: 14 years
  

In this scenario, the total value of your investment after 14 years would be ₹1,14,38,111. Here’s the breakdown:

• Invested Amount: ₹33,60,000
  
• Estimated Returns: ₹80,78,111
  

While the invested amount is slightly lower, the higher return makes a significant difference, bringing you well over ₹1 crore.

Scenario 3: Expected Return of 10% Over 17 Years

Finally, let’s take a more conservative approach and assume a return of 10% over a period of 17 years. This scenario is more cautious but still shows that SIP can be a powerful tool for wealth creation.

• SIP Amount: ₹20,000
  
• Expected Return: 10% per annum
  
• Investment Period: 17 years
  

With this setup, your total investment value after 17 years will be ₹1,07,33,966. Here’s the breakdown:

• Invested Amount: ₹40,80,000
  
• Estimated Returns: ₹66,53,966
  

Though the returns are lower than in the previous scenarios, the long investment horizon ensures you still reach ₹1 crore. You can check further calculations using the SIP calculator. 

Conclusion

While making ₹1 crore through SIP is certainly possible, it depends on factors such as the amount you invest, the expected rate of return, and the length of time you remain invested. As demonstrated in the three scenarios, investing ₹20,000 every month can result in substantial wealth creation with consistent returns and disciplined investing.

Remember, SIP is not a one-size-fits-all solution, and returns can vary depending on market conditions. However, by starting early and investing regularly, you can put yourself on the path to reaching your financial goals.