SIP Calculator: How Much Should You Invest To Accumulate Rs 3 Crore In 20, 25 And 30 Years?

With growing interest in mutual funds, many investors are turning to SIPs for long-term wealth creation. This shift is driven by the potential for higher returns compared to traditional options like fixed deposits (FDs). Over time, mutual funds have shown strong performance, particularly for investments over longer durations, while offering more flexibility to investors.  

This is why many people are considering mutual fund systematic investment plans (SIPs) as more suitable investment instruments for building a large retirement corpus. Starting early and staying invested over a long-term horizon, like 15 to 20 years or more, could be the key to building a sizeable corpus fund through SIPs.

Mutual fund SIPs offer the flexibility of choosing the amount and the tenure as per your needs. Due to the power of compounding, small investments every month can grow into a substantial corpus over the long term.

Let us say you are looking to build a Rs 3-crore corpus through SIPs. Here's how you can achieve the target over various tenures.

If one starts investing early and stays consistent, the required monthly SIP for a Rs 3-crore goal is affordable. Let’s see how much you need to invest every month via SIP to accumulate Rs 3 crore.

Scenario 1:  

Tenure: 20 years

Expected returns: 12%

Investment needed per month: Rs 30,026

Total investment: Rs 72 lakh

Estimated Returns: Rs 2.28 crore

Scenario 2:

Tenure: 25 years

Expected returns: 12%

Investment needed per month: Rs 15,809

Total investment: Rs 47.42 lakh

Estimated Returns: Rs 2.53 crore

Scenario 3: 

Tenure: 30 years

Expected returns: 12%

Investment needed per month: Rs 8,499

Total investment: Rs 30.59 lakh

Estimated Returns: Rs 2.69 crore

The calculations above show that investment duration is the key to your wealth accumulation journey. A longer investment horizon could help to accumulate the same amount with a smaller amount.

To maximise returns, investors could consider allocating funds into a mix of mutual fund categories, including large-cap, mid-cap, and small-cap funds. Additionally, exploring flexi-cap and multi-asset allocation funds can help diversify the portfolio and manage risk.

However, considering the ambitious target of Rs 3 crore, consulting a financial advisor might be prudent as it would help customise a suitable financial strategy while minimising risks.