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How a ₹10,000 monthly investment can grow to ₹1.9 crore in 25 years; see SIP calculation chart
5 min read | Updated on January 14, 2025, 10:46 IST
SUMMARY
In personal finance, merely having a goal is not enough. It is equally important to save and invest in the right way to achieve those goals. In this context, investing in equity mutual funds through a systematic investment plan (SIP) is considered one of the most hassle-free ways to reach a financial goal.
Choosing the right mutual fund also decides the future amount one can get from SIP investment. Representational image
It is well known that one tends to achieve more when there is a clear goal. The same is true for investing as well.
In the last decade, many well-diversified equity mutual funds have given annualised returns of more than 15% each, according to data published by the Association of Mutual Funds in India (AMFI) as of January 13, 2025.
However, investors—especially those who have just started saving for their goals—are always curious to know how their SIP investments will grow in the future. This article will help you understand this journey with the help of a chart.
Journey of ₹10,000 monthly SIP in 25 years
The following chart shows the journey of a ₹10,000 monthly SIP in an equity mutual fund when the expected annualised return during the entire investment term is 12%.
| Year | Cumulative investment | Cumulative return | Cumulative return % | Total value of investment |
|---|---|---|---|---|
| 2025 | ₹1,20,000.00 | ₹8,093.28 | 6.74% | ₹1,28,093.28 |
| 2026 | ₹2,40,000.00 | ₹32,432.00 | 13.51% | ₹2,72,432.00 |
| 2027 | ₹3,60,000.00 | ₹75,076.47 | 20.85% | ₹4,35,076.47 |
| 2028 | ₹4,80,000.00 | ₹1,38,348.34 | 28.82% | ₹6,18,348.34 |
| 2029 | ₹6,00,000.00 | ₹2,24,863.67 | 37.48% | ₹8,24,863.67 |
| 2030 | ₹7,20,000.00 | ₹3,37,570.31 | 46.88% | ₹10,57,570.31 |
| 2031 | ₹8,40,000.00 | ₹4,79,789.97 | 57.12% | ₹13,19,789.97 |
| 2032 | ₹9,60,000.00 | ₹6,55,265.65 | 68.26% | ₹16,15,265.65 |
| 2033 | ₹10,80,000.00 | ₹8,68,215.05 | 80.39% | ₹19,48,215.05 |
| 2034 | ₹12,00,000.00 | ₹11,23,390.76 | 93.62% | ₹23,23,390.76 |
| 2035 | ₹13,20,000.00 | ₹14,26,148.15 | 108.04% | ₹27,46,148.15 |
| 2036 | ₹14,40,000.00 | ₹17,82,521.75 | 123.79% | ₹32,22,521.75 |
| 2037 | ₹15,60,000.00 | ₹21,99,311.45 | 140.98% | ₹37,59,311.45 |
| 2038 | ₹16,80,000.00 | ₹26,84,179.52 | 159.77% | ₹43,64,179.52 |
| 2039 | ₹18,00,000.00 | ₹32,45,760.00 | 180.32% | ₹50,45,760.00 |
| 2040 | ₹19,20,000.00 | ₹38,93,781.94 | 202.80% | ₹58,13,781.94 |
| 2041 | ₹20,40,000.00 | ₹46,39,208.29 | 227.41% | ₹66,79,208.29 |
| 2042 | ₹21,60,000.00 | ₹54,94,392.36 | 254.37% | ₹76,54,392.36 |
| 2043 | ₹22,80,000.00 | ₹64,73,254.18 | 283.91% | ₹87,53,254.18 |
| 2044 | ₹24,00,000.00 | ₹75,91,479.19 | 316.31% | ₹99,91,479.19 |
| 2045 | ₹25,20,000.00 | ₹88,66,742.12 | 351.85% | ₹1,13,86,742.12 |
| 2046 | ₹26,40,000.00 | ₹1,03,18,959.31 | 390.87% | ₹1,29,58,959.31 |
| 2047 | ₹27,60,000.00 | ₹1,19,70,573.00 | 433.72% | ₹1,47,30,573.00 |
| 2048 | ₹28,80,000.00 | ₹1,38,46,871.64 | 480.79% | ₹1,67,26,871.64 |
| 2049 | ₹30,00,000.00 | ₹1,59,76,350.92 | 532.55% | ₹1,89,76,350.92 |
As you can see in the above chart, the monthly SIP of ₹10,000 would grow into a corpus of around ₹1.9 crore after 25 years assuming a 12% yearly return.
Interestingly, you can notice from the chart that the annual amount added to the corpus, or the cumulative return, is much higher towards the end of the investment period.
For example, from the 24th to the 25th year, the cumulative interest added to the corpus is more than ₹21 lakh. In contrast, the amount added to the corpus in the first year is just around ₹8,000. This is because of the power of compounding, which starts showing its effect more towards the end of the investment period.
Key points to consider
Please note that the above chart is only for illustrative purposes. The actual return from investment in a mutual fund scheme can be very different from the assumed return of 12%. This is because returns from investment in equity mutual fund schemes are dependent on the performance of stock markets during the investment period.
Further, choosing the right mutual fund also decides the future amount one can get from SIP investment. If you invest in a fund that fails to perform for a long time, you will not be able to generate a large corpus.
However, choosing the right fund is not easy for everyone. It is better to consult a SEBI-approved financial advisor to find the right fund for your future needs.
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