How much should you invest through an SIP to get ₹10 crore in 20 years?


Aspiring to have Rs 10 crores in the next 20 years is an ambitious financial goal. Achieving it requires planning, discipline, and, most importantly – sustained investments. Investing in mutual funds through systematic investment plans (SIPs) can be one such strategic approach to accomplish this objective consistently.

But before you plan your investments, knowing how much money you should invest through an SIP to get Rs 10 crore in 20 years is important. There is no one size fits all answer to this question, as different financial goals require different strategies and timelines. Depending on the specific requirements, what works for one investor might not necessarily work for another. To simplify the process, read on to learn how to figure out the right figure for your specific requirements.

What is an SIP in mutual funds?

An SIP allows investors to make regular and automated contributions towards a mutual fund investment plan. The investment amount and the frequency can be adjusted – it could be weekly, monthly, or quarterly. An SIP also facilitates the rupee cost averaging approach, where the costs of your investments get averaged out over time.

So, how much should you invest through an SIP to get Rs 10 Cr in 20 years?

  • The 15X15X15 rule

As per the 15 X 15 X 15 rule of mutual funds, one can expect an annual return of around 15% if the time horizon is 15 years or more. This means that if you start investing approximately Rs 66,000 today, then in 20 years, assuming an annual return of 15%, you would have accumulated Rs 10 crores.

  • Using a mutual funds SIP calculator

To get a more precise estimate of the amount you need to invest each month through SIPs, use an SIP calculator. You can enter the total amount of your financial goal, the expected return rate, and the number of years until you plan on achieving this goal. The calculator will then estimate how much you should invest in SIP every month to reach your desired amount.

Here is how to use it – Enter your desired amount (Rs. 10 crores), time frame (20 years), and expected returns (e.g., 13%) into the calculator. Using these figures, the calculator may suggest that you need approximately Rs 88,000 monthly to reach that goal. With this information, you can invest in mutual funds according to your suitable strategy.

  • By stepping up your SIP

For most average investors, committing such a large amount each month towards SIP investments right away can be difficult. Here you can opt for the step-up approach, where you gradually increase your investment amounts by a certain percentage every year if your income rises due to promotions or salary hikes over time.

For more clarity, you can use an online step-up SIP calculator available on many mutual fund websites. It allows you to select different annual returns and step-up percentages and then calculate how much money needs to be invested monthly into SIPs to achieve your desired goals. This way, your investments can grow along with your income and help you reach your desired target faster than expected.

Final words

With the right combination of knowledge, planning, and strategies, investing in SIP can be a smart way to reach your ambitious goal of Rs 10 crore in 20 years. However, note that various factors are involved with mutual fund investment, such as the type of fund, expense ratio, past scheme performance, etc. While some basic research can be conducted online, it is advisable to seek expert guidance periodically to ensure that your portfolio stays on track to meet your future objectives.

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