| Time | Total invested | Expected fund at 10% | Expected fund at 12% |
|---|---|---|---|
| 5 years | ₹3,00,000 | ₹3,90,412 | ₹4,12,432 |
| 10 years | ₹6,00,000 | ₹10,32,760 | ₹11,61,695 |
| 15 years | ₹9,00,000 | ₹20,89,621 | ₹25,22,880 |
| 20 years | ₹12,00,000 | ₹38,28,485 | ₹49,95,740 |
| 25 years | ₹15,00,000 | ₹66,89,452 | ₹94,88,175 |
| 30 years | ₹18,00,000 | ₹1,13,96,627 | ₹1,76,49,569 |
The magic of the last 10 years
At 12%, the fund reaches about ₹50 lakh in 20 years and ₹1.76 crore in the next 10. In the last 10 years the fund grows three and a half times, while your investment rises by only ₹6 lakh. That is compounding: earnings on your money, and earnings on those earnings.
Even 2% of return makes a big difference
Over 30 years the gap between 10% and 12% is ₹62 lakh. So small things like the expense ratio and choosing a direct plan matter when you pick a fund.
Keep in mind
- 10% and 12% are only estimates. Equity fund returns can be negative in some years.
- Because of inflation, ₹1.76 crore after 30 years will not be worth what ₹1.76 crore is today.
- Capital gains tax applies when you sell; this table is before tax.
Working: each instalment at the start of the month, monthly compounding (annual return ÷ 12).
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Frequently asked questions
How many years for ₹1 crore with a ₹5,000 SIP?
About 26 years at a 12% expected return. At 10%, about ₹1.14 crore in 30 years.
Should I stop my SIP when the market falls?
In a fall your SIP buys more units, which lowers your average cost. For long-term goals continuing the SIP is usually considered better, but decide based on your own situation.