Mutual Fund SIPs: How Much To Invest To Accumulate Rs 2 Crore In 15 Years

Accumulating wealth in the long term requires financial discipline and a strategic investment approach.

The investors need to carefully choose assets as per their financial goals and risk appetite. Among the wide range of savings instruments available for investors, the systematic investment plans in mutual funds have emerged as one of the popular choices for investors.

If you are looking forward to accumulating wealth in the long run with small contributions every month, SIPs could be a suitable option. The SIP schemes help investors to accumulate wealth due to the power of compounding. The investment horizon plays a crucial role in SIPs as a longer tenure could lead to potentially higher returns.

The investment amount and expected corpus should be aligned with individual financial goals, investment duration and risk tolerance. If you are looking forward to building a sizable corpus fund through SIP investments, it's important to choose the schemes carefully. The mutual funds offer an opportunity to invest across asset classes like equity, debt, gold and real estate.

If you are looking forward to accumulating Rs 2 crore in 15 years, it's important to plan the investment carefully and calculate the monthly amount you need to set aside to reach your financial goal.

The ideal monthly contribution that can help achieve this goal will depend on several factors, including the potential returns that a certain fund can give.

Assuming an annual return of 12%, let's find out how much you should invest monthly to reach Rs 2 crore in 15 years. You need to invest at least Rs 42,100 per month for 15 years.

• Total investment: Rs 75.78 lakh.

• Total Return at 12%: Rs 1.24 crore.

• Total maturity value after 15 years: Rs 2 crore.

Hence, Rs 2-crore corpus can be achieved in 15 years if one is willing to take a bet in equities mutual funds, with a monthly contribution of Rs 42,100.

Equity-based large-cap funds are able to give anywhere between 12% and 16% returns annually. There is even greater potential for returns in mid-cap and small-cap funds, historical trends have shown. However, these funds come with higher risks and are subject to market volatility. 

Conservative investors can consider allocating their contribution in a mix of large, mid, and small-cap funds, as well as non-market-linked assets, to diversify their portfolio. This approach helps balance potential returns and risks through stability and the power of compounding.