5000 SIP for 5 Years

Investing ₹5,000 monthly in a Systematic Investment Plan (SIP) for 5 years can be a stepping stone to building wealth. With the power of compounding and rupee cost averaging, SIPs can help you achieve your financial goals. Let’s explore how your investment grows across large-cap, mid-cap, and small-cap funds, based on historical average returns.

SIP 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 5000 SIP for 5 Years

These examples illustrate how SIP plans can cater to various financial goals, whether it's saving for a down payment on a home, funding higher education, or building a safety net. By tailoring investments to their goals and risk tolerance, individuals can pave the way to financial success.

Example 1: Large-Cap Fund

Scenario: A 35-year-old teacher, wants to save for a down payment on a home. They choose a large-cap fund for stability, offering an estimated 10% annual return.

Monthly SIP Amount: ₹5,000
Investment Period: 5 years
Fund Type: Large Cap
Annualised Returns: 10% CAGR

Outcome: In 5 years, the investment could grow to approximately ₹3.6 lakhs and can be calculated using SIP calculator. This amount can be used as a down payment for a home loan, bringing them closer to their dream of homeownership.

Example 2: Mid-Cap Fund

Scenario: A 28-year-old IT professional aims to save for their child's higher education. They invest in a mid-cap fund with an estimated 12% annual return, seeking a balance between growth and risk.

Monthly SIP Amount: ₹5,000
Investment Period: 5 years
Fund Type: Mid Cap
Annualised Returns: 12% CAGR

Outcome: In 5 years, the investment could grow to approximately ₹3.9 lakhs. This corpus can contribute significantly to their child's education expenses, ensuring they have the resources to pursue their dreams.

Example 3: Small-Cap Fund

Scenario: A 25-year-old entrepreneur is willing to take risks for higher potential rewards. They invest in a small-cap fund, which offers an estimated 15% annual return.

Monthly SIP Amount: ₹5,000
Investment Period: 5 years
Fund Type: Small Cap
Annualised Returns: 15% CAGR

Outcome: In 5 years, the investment could grow to approximately ₹4.4 lakhs. This amount can be used to expand their business, invest in other opportunities, or create a financial safety net.

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: Feb 2025

Compare more funds

Fund Name	3 Years	5 Years	10 Years
	Returns
Active Fund QUANT	23.92%	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%

Last updated: Feb 2025

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˜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 power of SIPs lies in their simplicity, flexibility, and potential to grow your wealth over time. Starting today, even with a modest monthly amount like ₹5,000 can create a substantial corpus for your future goals. The earlier you begin, the more time your investments have to compound with best sip plans, maximizing returns and reducing the impact of market fluctuations. Whether you prioritize stability with large-cap funds, balance with mid-caps, or growth with small-caps, starting now ensures you’re one step closer to financial freedom.

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FAQs

What is a Systematic Investment Plan (SIP)?

An SIP is a disciplined investment approach where a fixed amount of money is invested in a mutual fund at regular intervals, typically monthly. This helps in rupee cost averaging, which means you buy more units when the market is down and fewer units when the market is high.
What are the benefits of investing in an SIP for 5 years?
- Power of Compounding: Over 5 years, your investments have ample time to grow through the power of compounding.
- Rupee Cost Averaging: Helps reduce the impact of market volatility.
- Discipline: Encourages regular saving and investing habits.
- Flexibility: You can choose from various fund categories like large-cap, mid-cap, small-cap, etc., based on your risk tolerance and financial goals.
How much can I expect to earn with a ₹10,000 monthly SIP for 5 years?

The returns can vary significantly depending on the chosen fund, market conditions, and the investment tenure. The examples provided illustrate potential outcomes based on historical average returns.
What are the risks involved in investing in mutual funds through SIPs?
- Market Risk: The value of your investments can fluctuate due to market volatility.
- Fund Manager Risk: The performance of the fund depends on the fund manager's investment decisions.
- Liquidity Risk: In some cases, it may be difficult to redeem your investments quickly.
How do I choose the right mutual fund for my SIP?
- Define Your Goals: Determine your investment objectives (e.g., retirement, child's education, home purchase).
- Assess Your Risk Tolerance: Understand your ability to withstand market fluctuations.
- Research and Compare: Research different mutual fund options and compare their performance, expense ratios, and fund manager track records.
- Consult a Financial Advisor: Seek professional advice from a qualified financial advisor who can help you make informed investment decisions.
Can I withdraw money from my SIP before the 5-year period?

Yes, you can usually withdraw money from your SIP at any time. However, early withdrawals may attract exit loads or penalties, depending on the fund's rules.
How can I start investing in an SIP?
- Open a Demat and Trading Account: You can open these accounts online or through a brokerage firm.
- Choose a Mutual Fund: Select a mutual fund based on your investment goals and risk profile.
- Start Your SIP: Initiate your SIP through your online account or by submitting a physical form.