Power of Rs 12,000 SIP: How soon can you generate more than Rs 1 crore corpus with Rs 12,000 monthly investment?
A monthly SIP of Rs 12,000 can help you build a corpus of over Rs 1 crore in 20 years. Here’s how the power of consistency and compounding works.
SIPs have become one of the most popular ways to invest in mutual funds—and for good reason. They make investing easy, flexible, and effective for long-term wealth creation. If you're wondering how far a monthly SIP of Rs 12,000 can take you, the answer might surprise you. With consistent investment and the power of compounding, this amount can grow into a corpus of over Rs 1 crore. Let’s break down how this works and why starting early makes all the difference.
What’s an SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount regularly in a mutual fund of your choice. It’s a simple way to save and grow your money without needing to invest a large sum all at once.
Why SIP Instead of One-Time Investment?
Instead of putting in a lump sum like Rs 1 lakh in one go, SIP allows you to start with smaller amounts—say Rs 500 every month. This spreads out your risk and helps you invest without feeling the pinch.
How It Works
Once your SIP is set up, the selected amount gets automatically debited from your bank account every month. It then gets invested in the mutual fund scheme you’ve chosen.
You Get Units Based on Market Value
Every time your money is invested, you get units of the mutual fund. The number of units depends on that day’s market rate or NAV (Net Asset Value). Over time, these units keep adding up.
The Magic of Compounding
With each passing month, your returns start earning more returns. This compounding effect helps your money grow faster the longer you stay invested.
Flexible Returns
You don’t have to wait till the end. Depending on your plan, you can either withdraw your returns periodically or wait until the full term ends—totally your choice.
Best Time to Start? Now!
There’s no perfect day to start an SIP. The earlier you begin, the better it is for your long-term goals. Even small amounts invested early can grow big over time.
Let’s Take an Example
Imagine you want to invest Rs 1 lakh. You could either invest the entire amount at once or start a monthly SIP. If you go with a Rs 500 monthly SIP, the money is invested in parts every month—helping you handle market ups and downs better.
Rs 12,000 Monthly SIP Can Cross Rs 1 Crore
Here’s what you get if you invest Rs 12,000 every month for 20 years:
Total invested: Rs 28.8 lakh
Estimated returns: Rs 81.58 lakh
Final amount: Rs 1.10 crore
All this, just by staying consistent and patient.
Bottom Line
SIPs are not about getting rich overnight. But with regular investment, even a modest monthly amount like Rs 12,000 can help you build a strong financial future. Start early, stay invested, and let your money do the work.