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Power of Compounding: How soon can you generate Rs 7 crore retirement corpus with just Rs 17,000 monthly SIP investment?
Written By Priya Vishwakarma
Published: 12:25 PM, Sep 25, 2025 | Updated: 4:45 PM, Sep 25, 2025
Power of Compounding: SIP in mutual funds can be a parking spot for your money if you invest in a planned and strategic manner. In this write-up, we will calculate how much time you need to generate a Rs 7 crore corpus with just a Rs 17,000 monthly SIP investment.
According to the calculations, you need to invest in a SIP mutual fund for at least 30 years to build a Rs 7 crore corpus with a Rs 17,000 monthly SIP.
Power of Compounding: SIP in mutual funds can be a parking spot for your money if you invest in a planned and strategic manner. It is a type of investment that allows investors to invest a fixed amount on a regular basis, depending on their financial capacity. This interval can be monthly, weekly, or yearly. The best part is that there's no lock-in period, and you can start investing with as low as Rs 500 per month. Furthermore, there's no maximum investment limit for SIP mutual funds as well.
Plus, it harnesses the power of compounding to create a snowball effect that helps your investments grow exponentially over time. Let's learn how.
Key benefits of SIP in mutual funds
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- Power of compounding
- Rupee cost averaging
- Risk tolerance
SIP mutual fund: How much to invest monthly for a Rs 7 crore corpus? How does SIP work?
In this write-up, we will calculate how much time you need to generate a Rs 7 crore corpus with just a Rs 17,000 monthly SIP investment. For all the calculations, we are assuming a 13 per cent annualised return rate. However, it should be noted that the actual rate may vary depending on the market conditions.
Monthly SIP for wealth creation: How soon can you generate Rs 7 crore corpus with Rs 17,000 monthly investment?
According to the calculations, you need to invest in a SIP mutual fund for at least 30 years to build a Rs 7 crore corpus with a Rs 17,000 monthly SIP.
Rs 17,000 SIP for 30 years: Calculating total investment
In 30 years, you will invest a total of Rs 61,20,000.
13% SIP return investment: Calculating average capital gain
In terms of capital gain, a total of Rs 6,90,30,997 will be received.
Retirement planning with SIP: Final corpus received
Consequently, at the end of 30 years, including the principal investment and capital gain, you will get a total of Rs 7,51,50,997.
13% SIP Return Calculation: Create Rs 7 crore corpus with Rs 17K/month SIP
- Total Investment Amount: Rs 61,20,000
- Capital Gains: Rs 6,90,30,997
- Total Approx. Return: Rs 7,51,50,997
| Year | SIP Amount/Month (in Rs) | Total Invested Amount (in Rs) | Interest Amount/Year (in Rs) | Maturity Value (in Rs) |
| Year1 | 17,000 | 2,04,000 | 14,951 | 2,18,951 |
| Year2 | 17,000 | 4,08,000 | 60,125 | 4,68,125 |
| Year3 | 17,000 | 6,12,000 | 1,39,693 | 7,51,693 |
| Year4 | 17,000 | 8,16,000 | 2,58,402 | 10,74,402 |
| Year5 | 17,000 | 10,20,000 | 4,21,656 | 14,41,656 |
| Year6 | 17,000 | 12,24,000 | 6,35,603 | 18,59,603 |
| Year7 | 17,000 | 14,28,000 | 9,07,240 | 23,35,240 |
| Year8 | 17,000 | 16,32,000 | 12,44,530 | 28,76,530 |
| Year9 | 17,000 | 18,36,000 | 16,56,536 | 34,92,536 |
| Year10 | 17,000 | 20,40,000 | 21,53,571 | 41,93,571 |
| Year11 | 17,000 | 22,44,000 | 27,47,371 | 49,91,371 |
| Year12 | 17,000 | 24,48,000 | 34,51,294 | 58,99,294 |
| Year13 | 17,000 | 26,52,000 | 42,80,540 | 69,32,540 |
| Year14 | 17,000 | 28,56,000 | 52,52,407 | 81,08,407 |
| Year15 | 17,000 | 30,60,000 | 63,86,582 | 94,46,582 |
| Year16 | 17,000 | 32,64,000 | 77,05,468 | 1,09,69,468 |
| Year17 | 17,000 | 34,68,000 | 92,34,563 | 1,27,02,563 |
| Year18 | 17,000 | 36,72,000 | 1,10,02,880 | 1,46,74,880 |
| Year19 | 17,000 | 38,76,000 | 1,30,43,442 | 1,69,19,442 |
| Year20 | 17,000 | 40,80,000 | 1,53,93,825 | 1,94,73,825 |
| Year21 | 17,000 | 42,84,000 | 1,80,96,797 | 2,23,80,797 |
| Year22 | 17,000 | 44,88,000 | 2,12,01,026 | 2,56,89,026 |
| Year23 | 17,000 | 46,92,000 | 2,47,61,897 | 2,94,53,897 |
| Year24 | 17,000 | 48,96,000 | 2,88,42,443 | 3,37,38,443 |
| Year25 | 17,000 | 51,00,000 | 3,35,14,395 | 3,86,14,395 |
| Year26 | 17,000 | 53,04,000 | 3,88,59,387 | 4,41,63,387 |
| Year27 | 17,000 | 55,08,000 | 4,49,70,321 | 5,04,78,321 |
| Year28 | 17,000 | 57,12,000 | 5,19,52,920 | 5,76,64,920 |
| Year29 | 17,000 | 59,16,000 | 5,99,27,503 | 6,58,43,503 |
| Year30 | 17,000 | 61,20,000 | 6,90,30,997 | 7,51,50,997 |
FAQs
Q. How much can I earn from a Rs 17,000 monthly SIP in 30 years?
A. Assuming a 13% annual return, a Rs 17,000 monthly SIP over 30 years can grow to approximately Rs 7.5 crore, including capital gains and principal investment.
Q. Is Rs 17,000 SIP enough for retirement planning?
A. 17,000 monthly SIP can be a strong foundation for retirement if started early and maintained consistently. It may yield a corpus of around Rs 7 crore over 30 years, depending on market performance.
Q. What is the power of compounding in SIP investments?
A. The power of compounding allows your SIP returns to generate additional returns over time, creating exponential growth. The longer you stay invested, the greater the compounding effect.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
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