SIP Investment 2025: Great news! You can build a huge corpus with just a small investment. Systematic Investment Plans (SIPs) in mutual funds make that possible! When you invest as little as ₹100 per day, it has the potential of becoming ₹20 lakhs and above in 15 years, thanks to compounding.
Let us analyze how the calculations are made and learn how off-the-cuff disciplined investing turns small-time savings into big-time wealth.
How SIP Works to Build Wealth with Just ₹100 a Day
SIP is a systematic way of investing in mutual funds, which allows you to invest small amounts of money over time so that you can reap the benefits of market growth. Here’s how your investment accrues over time:
- Monthly Investment: ₹100/day = ₹3,000/month
- Annual Investment: ₹36,000/year
- Assumed Annual Return: 15% (historical average for equity mutual funds)
Projected Growth Over Different Periods
After 5 Years
- Total Invested: ₹1,80,000
- Estimated Returns: ₹89,045
- Total Value: ₹2,69,045
After 10 Years
- Total Invested: ₹3,60,000
- Estimated Returns: ₹4,53,564
- Total Value: ₹8,13,564
After 15 Years
- Total Invested: ₹5,40,000
- Estimated Returns: ₹14,90,589
- Total Value: ₹20,30,589
The Magic of Compounding
Investing in SIPs has all to do with compounding. Compounding means that, unlike simple interest, your returns in SIPs can generate more returns in the future, hence the longer you invest, the more wealth generation.
- In the beginning, growth appears slow,
- But in the exponential returns.
Hence, early initiation and constant action on your part become paramount. Even smaller amounts, if put to the right use, can create a fortune.
Frequently Asked Questions (FAQs)
Q1: Is SIP safe?
Yes, SIP is a systematic and low-risk way to invest in mutual funds. While market fluctuations exist, long-term investing minimizes risks.
Q2: Can I start with just ₹100?
Absolutely! Many funds allow SIPs starting at ₹100 per day or ₹500 per month.
Q3: What is compounding, and how does it work?
Compounding means earning returns on your returns. Over time, this snowball effect significantly boosts your corpus.