1 crore. It sounds like a huge number. But with the right SIP strategy, it’s surprisingly achievable — even on a modest salary.
Let’s break down exactly how much you need to invest every month, depending on when you start and how long you stay invested.
The Simple Formula
The amount you need depends on two things:
- How many years you have
- What returns your mutual fund gives
The longer you invest, the less you need per month. That’s compounding doing the heavy lifting.
SIP Needed to Reach 1 Crore
Here’s a realistic table assuming different return rates:
At 12% Annual Returns (Equity Mutual Funds Average)
| Time Horizon | Monthly SIP | Total Invested | Wealth Gained |
|---|---|---|---|
| 10 years | ₹43,000 | ₹51,60,000 | ₹48,40,000 |
| 15 years | ₹20,000 | ₹36,00,000 | ₹64,00,000 |
| 20 years | ₹10,000 | ₹24,00,000 | ₹76,00,000 |
| 25 years | ₹5,300 | ₹15,90,000 | ₹84,10,000 |
| 30 years | ₹2,900 | ₹10,44,000 | ₹89,56,000 |
At 15% Annual Returns (Good Equity Funds)
| Time Horizon | Monthly SIP | Total Invested | Wealth Gained |
|---|---|---|---|
| 10 years | ₹36,000 | ₹43,20,000 | ₹56,80,000 |
| 15 years | ₹15,000 | ₹27,00,000 | ₹73,00,000 |
| 20 years | ₹6,600 | ₹15,84,000 | ₹84,16,000 |
| 25 years | ₹3,000 | ₹9,00,000 | ₹91,00,000 |
| 30 years | ₹1,400 | ₹5,04,000 | ₹94,96,000 |
Look at the 30-year row. Just ₹2,900/month at 12% returns gets you to 1 crore. That’s less than what most people spend on eating out.
The Power of Starting Early
This is the single most important takeaway from this article.
Let’s compare two people:
Rahul starts at age 25:
- Invests ₹5,300/month
- Stops at age 50 (25 years)
- Total invested: ₹15,90,000
- Corpus: ₹1 crore
Priya starts at age 35:
- Invests ₹20,000/month
- Stops at age 50 (15 years)
- Total invested: ₹36,00,000
- Corpus: ₹1 crore
Priya invested more than double what Rahul did, but both ended up with the same amount. The only difference? Rahul started 10 years earlier.
Starting early is the biggest cheat code in investing.
What If You Can Only Invest ₹5,000/Month?
That’s perfectly fine. Here’s what ₹5,000/month grows into:
| Years | At 12% Returns | At 15% Returns |
|---|---|---|
| 10 | ₹11,60,000 | ₹13,90,000 |
| 15 | ₹25,00,000 | ₹33,70,000 |
| 20 | ₹49,50,000 | ₹75,80,000 |
| 25 | ₹94,90,000 | ₹1,64,00,000 |
| 30 | ₹1,76,00,000 | ₹3,50,00,000 |
At 12% returns, ₹5,000/month for 25 years gives you nearly 1 crore. At 15%, you cross 1.5 crore.
Step-Up SIP: The Smarter Way
A regular SIP stays the same every month. But your salary increases every year, right? A Step-Up SIP increases your SIP amount by a fixed percentage every year.
Example: 10% Annual Step-Up
Starting SIP: ₹5,000/month with 10% yearly increase at 12% returns:
| Year | Monthly SIP | Annual Investment |
|---|---|---|
| 1 | ₹5,000 | ₹60,000 |
| 5 | ₹7,300 | ₹87,600 |
| 10 | ₹11,800 | ₹1,41,600 |
| 15 | ₹19,000 | ₹2,28,000 |
Result after 15 years: ~₹1 crore
Without step-up, ₹5,000/month for 15 years gives you only ₹25 lakh. With a 10% step-up, you reach 1 crore in the same time.
Most mutual fund apps (Groww, Kuvera, Coin) let you set up step-up SIPs automatically.
Which Mutual Funds Should You Pick?
For a 1 crore goal, you need equity mutual funds. Here are the categories:
| Fund Type | Expected Returns | Risk | Best For |
|---|---|---|---|
| Large Cap | 10-12% | Low-Medium | Conservative investors |
| Flexi Cap | 12-14% | Medium | Most investors |
| Mid Cap | 13-16% | Medium-High | Aggressive investors |
| Small Cap | 14-18% | High | Very long-term (15+ years) |
| Index Fund (Nifty 50) | 11-13% | Medium | Beginners |
A Simple Portfolio
If you’re just starting out, keep it simple:
- 60% in a Nifty 50 or Flexi Cap fund
- 40% in a Mid Cap fund
That’s it. Don’t overthink it. You can always adjust later.
Common Questions
“Is 12% return realistic?”
The Nifty 50 has given approximately 12-13% annualized returns over the last 20 years. It’s not guaranteed, but historically consistent over long periods.
“What about inflation?”
Good point. 1 crore today won’t be worth 1 crore in 20 years. At 6% inflation, 1 crore in 2046 has the purchasing power of about ₹31 lakh today. Solution? Aim higher. Target 2-3 crore instead, and use step-up SIPs.
“Should I do SIP or lump sum?”
If you have a large amount, lump sum statistically beats SIP about 65% of the time. But SIP is better for salaried people because:
- You invest from your monthly income
- It removes the stress of market timing
- It builds discipline
If you want to understand SIP better, read my detailed guide on SIP vs SWP where I compare both strategies.
“What if the market crashes?”
Keep investing. Crashes are the best time for SIP investors because you buy more units at lower prices. Every market crash in history has been followed by a recovery. The key is to not panic and stop your SIP.
Your Action Plan
- Decide your time horizon — how many years until you need the money?
- Use the tables above to pick your monthly SIP amount
- Open a mutual fund account on Groww, Kuvera, or Coin (all free)
- Start a SIP in a Nifty 50 index fund or flexi cap fund
- Set up a step-up of 10% per year
- Don’t touch it. Let compounding work.
The math is clear. The only variable is whether you start today or keep postponing.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Past returns do not guarantee future performance. Please consult a SEBI-registered financial advisor before making investment decisions. Mutual fund investments are subject to market risks.