10000 SIP for 20 Years

Investing ₹10,000 monthly in a Systematic Investment Plan (SIP) for 20 years is a powerful way to build wealth for your financial goals. The combination of compounding and rupee cost averaging makes SIPs an excellent tool for long-term investment. Let’s see how investing across large-cap, mid-cap, and small-cap funds can help achieve different life goals supported by real-life scenarios.

SIP Insurance Plan Benefits

Start SIP with as low as ₹1000

No hidden charges

Save upto ₹46,800 in Taxunder section 80C^{^}

Zero LTCG Tax^¶

Disciplined & worry-free investing

Examples of ₹10,000 SIP for 20 Years

These examples showcase how SIPs cater to various aspirations, from ensuring a secure retirement to building wealth for big dreams.

Example 1: Large-Cap Fund

Nisha, a 40-year-old doctor, plans to retire early and live a stress-free life. She opts for a large-cap fund that provides stability and consistent returns of 10% annually.

Monthly SIP Amount: ₹10,000
Investment Period: 20 years
Fund Type: Large Cap
Annualised Returns: 10% CAGR

Scenario: Nisha starts her SIP at 40. By 60, her investment plan matures to ₹72.4 lakhs, ensuring she has a reliable corpus for her early retirement dreams.

Using the SIP return calculator, the calculation is as follows:

Investment: ₹24L
Returns: ₹48.4L
Total Corpus: ₹72.4L

Example 2: Mid-Cap Fund

Raj, a 28-year-old sales professional, dreams of owning a spacious home for his family. He invests in a mid-cap fund, balancing moderate risk and growth, with 12% annual returns.

Monthly SIP Amount: ₹10,000
Investment Period: 20 years
Fund Type: Mid Cap
Annualised Returns: 12% CAGR

Scenario: At age 48, Raj’s SIP matures to ₹92 lakhs, helping him make a substantial down payment on his dream home.

Using the SIP calculator, the calculation is as follows:

Investment: ₹24L
Returns: ₹68L
Total Corpus: ₹92L

Example 3: Small-Cap Fund

Anjali, a 25-year-old software developer, wants to accumulate wealth to start her fashion brand in 20 years. She invests in a small-cap fund, accepting higher risk for 15% annual returns.

Monthly SIP Amount: ₹10,000
Investment Period: 20 years
Fund Type: Small Cap
Annualised Returns: 15% CAGR

Scenario: By age 45, Anjali’s investment grew to ₹1.33 crore, providing her with enough capital to launch her business with confidence.

Using the SIP calculator, the calculation is as follows:

Investment: ₹24L
Returns: ₹1.09Cr
Total Corpus: ₹1.33Cr

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

16.4%

High Growth Fund

16.77%

Top 200 Fund

13.2%

Accelerator Mid-Cap Fund II

13.33%

Opportunities Fund

8.64%

Equity II Fund

11.62%

Accelerator Fund

12.67%

Grow Money Plus Fund

14.04%

Multiplier

10.82%

Equity Top 250 Fund

11.19%

Future Apex Fund

10.97%

Opportunities Fund

12.76%

Frontline Equity Fund

14.2%

Virtue II

9.39%

Pension Dynamic Equity Fund

10.45%

Equity Fund

9.07%

Blue-Chip Equity Fund

Insurance Companies
Mutual Funds

Fund Name	5 Years	7 Years	10 Years
	Returns
High Growth Fund Max Life Rating	24.84%	18.57%	16.4% View Plan
Top 200 Fund Tata AIA Rating	24.04%	20.03%	16.77% View Plan
Accelerator Mid-Cap Fund II Bajaj Allianz Rating	17.43%	10.73%	13.2% View Plan
Opportunities Fund HDFC Standard Rating	17.56%	12.29%	13.33% View Plan
Equity II Fund Canara HSBC Oriental Bank Rating	11.56%	9.27%	8.64% View Plan
Grow Money Plus Fund Bharti AXA Rating	15.75%	13.48%	12.67% View Plan
Multiplier Birla Sun Life Rating	18.22%	11.28%	14.04% View Plan
Opportunities Fund ICICI Prudential Rating	15.71%	11.97%	10.97% View Plan
Flexi Growth Fund LIC Rating	-	-	- View Plan
Virtue II PNB Metlife Rating	20.71%	15.98%	14.2% View Plan

Fund rating powered by

Last updated: Jan 2025

Compare more funds

Fund Name	3 Years	5 Years	10 Years
	Returns
Active Fund QUANT	24.92%	31.48%	21.87%
Flexi Cap Fund PARAG PARIKH	20.69%	26.41%	19.28%
Large and Mid-Cap Fund EDELWEISS	22.34%	24.29%	17.94%
Equity Opportunities Fund KOTAK	24.64%	25.01%	19.45%
Large and Midcap Fund MIRAE ASSET	19.74%	24.32%	22.50%
Flexi Cap Fund PGIM INDIA	14.75%	23.39%	-
Flexi Cap Fund DSP	18.41%	22.33%	16.91%
Emerging Equities Fund CANARA ROBECO	20.05%	21.80%	15.92%
Focused fund SUNDARAM	18.27%	18.22%	16.55%

Updated as of Dec 2024

Compare more funds

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Why Should You Start Investing Today?

The earlier you start, the greater your chances of building wealth over time. A ₹10,000 SIP started today can grow into a significant corpus over 20 years, as seen in the examples of Nisha, Raj, and Anjali. Whether your goal is early retirement, homeownership, or starting a business, SIPs provide a disciplined and flexible path to financial freedom. Take the first step today to secure a brighter tomorrow!

Start An Sip Today Watch Your Money Grow

FAQs

What is the ideal duration for a SIP?

SIPs are best suited for long-term goals, ideally 10–20 years, to leverage the benefits of compounding.
Can I modify my SIP investments?

Yes, SIP amounts can be increased or decreased based on your financial situation.
Are small-cap funds too risky?

Small-cap funds involve higher risk but can offer significant returns over the long term, as seen in Anjali’s case.
What’s the difference between large-cap and mid-cap funds?

Large-cap funds are more stable with consistent returns, while mid-cap funds offer higher growth potential with moderate risk.
Can SIPs help with tax savings?

Yes, Equity Linked Savings Schemes (ELSS) are SIPs that provide tax benefits under Section 80C of the Income Tax Act.
What happens if I miss an SIP payment?

Missing a payment doesn’t cancel your SIP but may impact your overall returns. You can resume payments later.
How do I choose the right SIP fund?

The choice depends on your financial goals, risk appetite, and investment horizon. Consulting a financial advisor is recommended.
Can I withdraw my SIP investment before maturity?

Yes, unless it's an ELSS fund with a 3-year lock-in period. However, early withdrawals may reduce the potential returns.
Is it better to invest a lump sum or in SIPs?

SIPs are better for disciplined investing and managing market volatility, whereas lump sum investments suit those with a larger initial corpus.
Why is starting early crucial for SIPs?

Starting early gives your money more time to grow through power of compounding, significantly boosting returns over the long term.