Rs 12,000 SIP for 30 Years vs Rs 24,000 SIP for 15 years: Which can generate higher corpus in long term?

SIP Investment: Whether you’re planning for retirement or aiming to achieve other financial goals like buying a house, a car, funding your children’s education, or something else, strategic planning can help you reach your objectives on time with less worry. One of the most effective ways to accumulate a large corpus is through a Systematic Investment Plan (SIP). This method involves investing a fixed amount regularly, whether monthly, weekly, or annually, in mutual funds. The amount and time period depend on your financial capacity and preferences. However, many people are often unsure whether they should invest a small amount regularly over the long term or a larger amount regularly over the short term. 

In this write-up, we’ll explain, through calculations, which approach can generate a higher corpus: Rs 12,000 in monthly SIP for 30 years, or Rs 24,000 in monthly SIP for 15 years.

How Much Corpus Can You Generate in 30 Years with a Rs 12,000 Monthly SIP Investment?

At a 12% Annualised Return Rate

As per calculations, with an annualised return rate of 12 per cent, you can generate approximately Rs 3.6 crore in 30 years with a monthly SIP investment of Rs 12,000.

Full Calculations for Rs 12,000 SIP Over 30 Years (12% return rate)

- Total Investment: Rs 43,20,000
- Expected Capital Gain: Rs 3,26,51,679
- Total Corpus: Rs 3,69,71,679

At a 13 per cent Annualised Return Rate

With an annualised return rate of 13 per cent, you can generate approximately Rs 4.5 crore in 30 years with a monthly SIP investment of Rs 12,000.

Full Calculations for Rs 12,000 SIP Over 30 Years (13% return rate)

- Total Investment: Rs 43,20,000
- Expected Capital Gain: Rs 4,08,18,228
- Total Corpus: Rs 4,51,38,228

At a 14 per cent Annualised Return Rate

With an annualised return rate of 14 per cent, you can generate approximately Rs 5.5 crore in 30 years with a monthly SIP investment of Rs 12,000.

Full Calculations for Rs 12,000 SIP Over 30 Years (14% return rate)

- Total Investment: Rs 43,20,000
- Expected Capital Gain: Rs 5,08,75,448
- Total Corpus: Rs 5,51,95,448

How Much Corpus Can You Generate in 15 Years with a Rs 24,000 Monthly SIP Investment?

At a 12 per cent Annualised Return Rate

At an annualised return rate of 12 per cent, you can generate approximately Rs 1.14 crore in 15 years with a monthly SIP investment of Rs 24,000.

Full Calculations for Rs 24,000 SIP Over 15 Years (12% return rate)

- Total Investment: Rs 43,20,000
- Expected Capital Gain: Rs 71,02,354
- Total Corpus: Rs 1,14,22,354

At a 13 per cent Annualised Return Rate

With a 13 per cent annualised return rate, you can generate approximately Rs 1.24 crore in 15 years with a monthly SIP investment of Rs 24,000.

Full Calculations for Rs 24,000 SIP Over 15 Years (13% return rate)

- Total Investment: Rs 43,20,000
- Expected Capital Gain: Rs 81,24,595
- Total Corpus: Rs 1,24,44,595

At a 14 per cent Annualised Return Rate

With a 14 per cent annualised return rate, you can generate approximately Rs 1.35 crore in 15 years with a monthly SIP investment of Rs 24,000.

Full Calculations for Rs 24,000 SIP Over 15 Years (14% return rate)

- Total Investment: Rs 43,20,000
- Expected Capital Gain: Rs 92,44,971
- Total Corpus: Rs 1,35,64,971

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)