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Power of Rs 5,000 SIP: How quickly can you generate Rs 1 crore corpus with just Rs 5,000 monthly investment?
March 27, 2025
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Power of Rs 5,000 SIP: How quickly can you generate Rs 1 crore corpus with just Rs 5,000 monthly investment?


Power of Rs 5,000 SIP: If you want to build a corpus of Rs 1 crore with a Rs 5,000 monthly investment, then you need to plan and invest in SIP strategically. In this write-up, we will calculate how much time it will take to generate a Rs 1 crore corpus with just Rs 5,000 monthly investment- 

Note: For all the calculations, we are assuming the average return rate of 12 per cent.

How much time will it take to build a Rs 1 crore corpus with Rs 5,000 monthly SIP?

According to the calculations, you need to invest for at least 26 years in SIP mutual funds to build a corpus of over Rs 1 crore with a Rs 5,000 monthly investment.

Rs 1 crore corpus with Rs 5,000 monthly SIP: Calculating average investment

In 26 years, you will invest a total of Rs 15,60,000.

Rs 1 crore corpus with Rs 5,000 monthly SIP: Calculating average capital gain

Assuming the average annual return rate of 12 per cent, a total of Rs 91,95,560 (average) will be received in terms of capital gain. It should be noted that this is an expected return, and the actual amount may vary depending on the market condition. 

Rs 1 crore corpus with Rs 5,000 monthly SIP: Final Corpus Received 

Consequently, at the end of 26 years, including the principal investment and capital gain, you will get a total of Rs 1,07,55,560.

Full Calculation: You may become the owner of Rs 1.07 crore after 26 years

  • Total Investment Amount: Rs 15,60,000
  • Capital Gains: Rs 91,95,560
  • Total Approx. Return: Rs 1,07,55,560

 

Year SIP Amt /
Month		 Total Invested
Amt		 Interest Amt /
Year		 Maturity
Value
Year1 5,000 60,000 4,047 64,047
Year2 5,000 1,20,000 16,216 1,36,216
Year3 5,000 1,80,000 37,538 2,17,538
Year4 5,000 2,40,000 69,174 3,09,174
Year5 5,000 3,00,000 1,12,432 4,12,432
Year6 5,000 3,60,000 1,68,785 5,28,785
Year7 5,000 4,20,000 2,39,895 6,59,895
Year8 5,000 4,80,000 3,27,633 8,07,633
Year9 5,000 5,40,000 4,34,108 9,74,108
Year10 5,000 6,00,000 5,61,695 11,61,695
Year11 5,000 6,60,000 7,13,074 13,73,074
Year12 5,000 7,20,000 8,91,261 16,11,261
Year13 5,000 7,80,000 10,99,656 18,79,656
Year14 5,000 8,40,000 13,42,090 21,82,090
Year15 5,000 9,00,000 16,22,880 25,22,880
Year16 5,000 9,60,000 19,46,891 29,06,891
Year17 5,000 10,20,000 23,19,604 33,39,604
Year18 5,000 10,80,000 27,47,196 38,27,196
Year19 5,000 11,40,000 32,36,627 43,76,627
Year20 5,000 12,00,000 37,95,740 49,95,740
Year21 5,000 12,60,000 44,33,371 56,93,371
Year22 5,000 13,20,000 51,59,480 64,79,480
Year23 5,000 13,80,000 59,85,286 73,65,286
Year24 5,000 14,40,000 69,23,436 83,63,436
Year25 5,000 15,00,000 79,88,175 94,88,175
Year26 5,000 15,60,000 91,95,560

1,07,55,560

 

(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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