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What does a ₹10,000/month SIP grow to in 20 years?
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See how a modest ₹10,000 monthly SIP compounds into nearly ₹1 crore over 20 years at 12% p.a. — the power of long-term compounding.
Why ₹10,000 Monthly SIP Matters
A ₹10,000 monthly SIP is the realistic starting point for most middle-class Indian earners — about 10-15% of a ₹8-10 LPA take-home. Over 20 years at 12% historical equity returns, those ₹10,000 monthly contributions of ₹24 lakh total grow to nearly ₹1 crore. That single example demonstrates compounding more clearly than any textbook.
What’s powerful here is the difference between 10 years and 20 years. The same ₹10,000 SIP grows to about ₹23 lakh in 10 years, ₹50 lakh in 15 years, and ₹1 crore in 20 years. Doubling the time roughly quadruples the corpus — that’s compounding’s gift, but only to those who stay invested.
Three caveats matter for Indian investors. First, 12% is the long-run average — individual years can swing from -30% to +60%. Second, equity LTCG above ₹1.25 lakh per year is taxed at 12.5%, so plan staggered redemptions. Third, the ₹1 crore in 2046 has the purchasing power of about ₹35-40 lakh today after 5% inflation — useful but not “rich”.