Mutual Funds: How Much Monthly SIP You Need to Reach ₹1 Crore in 10 Years
Mutual Funds: How Much Monthly SIP You Need to Reach ₹1 Crore in 10 Years
If you want to build a corpus of ₹1 crore in 10 years, investing through Systematic Investment Plans (SIPs) in mutual funds could be the most practical route. While traditional options like fixed deposits or gold are safer, they usually take much longer to generate such wealth.
In SIPs, the amount you need to invest every month depends largely on the rate of return your portfolio earns. Using an SIP calculator, here’s how the math works out:
- At 12% annual return, you’ll need to invest ₹43,150 per month.
- At 14% annual return, the SIP requirement falls to ₹38,250 per month.
- At 16% annual return, you would need just ₹33,750 per month.
So, with higher returns, your monthly investment burden comes down. But there’s a catch — returns above 10% are usually possible only in equity mutual funds, not debt funds. That means to realistically reach ₹1 crore in 10 years, investors must keep their portfolio tilted heavily towards equity.
