Want to build ₹1 crore through mutual fund SIPs? Here’s how much you need to invest every month — and how a 10% yearly increase in your SIP can help you reach your goal faster. Learn how compounding and step-up SIPs can double your wealth over time.
Mutual Fund SIP Calculator: How Much to Invest Per Month to Get ₹1 Crore in 20 Years
A Systematic Investment Plan (SIP) is one of the simplest and most effective ways to build wealth over time. It combines two powerful elements of investing — rupee-cost averaging and the power of compounding.
On one hand, rupee-cost averaging takes away the worry of timing the market by balancing your investments — you buy fewer units when the market is high and more when it’s low. On the other hand, compounding helps your money grow exponentially over the years.
Why SIPs Help You Stay Disciplined
SIPs also help maintain financial discipline. Since the SIP amount is automatically debited every month from your bank account, your investment continues consistently without emotional decision-making.
Another benefit is flexibility — you can start with a small amount and increase it gradually as your income grows. This is called a step-up SIP, and it can make a big difference to your long-term wealth creation.
How Step-up SIP Boosts Your Corpus
Let’s take an example: you start investing ₹1,000 per month in a SIP and you continue this for 20 years and earn an average return of 15% CAGR. Your total corpus after 20 years will be around ₹15.16 lakh.
Now, if you increase your SIP amount by 10% every year (that is, ₹1,000 in year one, ₹1,100 in year two, ₹1,210 in year three, and so on), your total corpus after 20 years can grow to ₹25 lakh.
That’s almost double the amount, simply by stepping up your SIP by a modest 10% annually. It’s a realistic approach since most people’s income also grows by around that percentage every year.
Is a 15% CAGR for 20 Years Realistic?
Yes — if you invest in good equity mutual funds, a 15% annualised return (CAGR) is possible over the long term.
There are over 100 equity mutual fund schemes in India that have completed 20 years. Of these, more than 55 funds have delivered returns ranging from 10% to 19.62% CAGR. So, we can reasonably assume a median return of around 15% from equity mutual funds over a long-term horizon.
How to Reach ₹1 Crore Through SIP
Normal SIP (Fixed Investment)
According to the SIP calculator, you need to invest ₹7,500 per month for 20 years at an expected annual return of 15% to reach a corpus of ₹1 crore.
Step-up SIP (Increasing Investment by 10% Every Year)
If you increase your SIP amount by 10% every year, you can reach the same ₹1 crore goal in less than 17 years.
SIP Vs Step-up SIP: Calculations show that by just stepping up your SIP yearly, you could become a crore pati three years earlier than a normal SIP would allow.
A Word of Caution for Investors
While many mutual fund SIPs have delivered over 15% CAGR in the past two decades, past performance is not a guarantee of future returns. Market cycles, economic conditions and fund management strategies can impact future returns.
So, investors should research funds carefully, invest based on their risk profile, and stay invested for the long term to make the most of compounding.
Wallet4Wealth’s Role
At Wallet4Wealth, we help investors choose the right mutual fund portfolio that matches their goals, time horizon, and risk appetite. From creating SIP plans to monitoring fund performance and adjusting strategies when needed, our expert guidance ensures that every rupee you invest works efficiently toward your financial goals.
We believe in smart planning, disciplined investing, and long-term wealth creation — helping you stay on track toward building your ₹1 crore dream and beyond.
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This blog is purely for educational purposes. Mutual fund investments are subject to market risks, read all scheme-related documents carefully.
