Nowadays, everyone wants a solid fund for the future—whether for retirement, their children's education, or buying their dream home. If your goal is to accumulate ₹1 crore by 2035, the most reliable way to achieve this is through a SIP (Systematic Investment Plan), i.e., investing a fixed amount in mutual funds every month. SIP is an easy and disciplined way for small investors to build a corpus worth crores over the long term.

What is SIP?

SIP is an investment method in which you invest a fixed amount every month in a mutual fund. This amount is invested in equity, debt, or hybrid funds. The most important feature of SIP is that it works on the principles of rupee cost averaging and compounding.

Rupee cost averaging means that when the market is low, you get cheaper units, reducing the average cost.

The magic of compounding makes your money grow faster. This means that the interest earned on your investment continues to earn interest.

SIP Calculation for Rs 1 Crore

Suppose you start an SIP in 2025 and aim to have a corpus of Rs 1 crore by 2035. This means the total investment period is only 10 years (120 months).

If the return is 12%:

Monthly Investment (P): ₹45,000
Total Investment: ₹43,000 × 120 = ₹54 lakh
Wealth Gain: ₹46.8 lakh
Total Fund: ₹1 crore

If the return is 15%:

Monthly Investment (P): ₹40,000
Total Investment: ₹45 lakh
Wealth Gain: ₹64.4 lakh
Total Fund: Around ₹1.2 crore

Step-Up SIP Plan:

If you start with an SIP of ₹30,000 to ₹35,000 and increase it by 15% every year, you can build a fund of ₹1 crore in 10 years.

Duration SIP Amount (₹) Future Value (₹)
10 years 45000 1.2 Crores
1 year 45000 5.8 Lakhs
2 years 45000 12.5 Lakhs
3 years 45000 20.2 Lakhs
4 years 45000 29.1 Lakhs
5 years 45000 39.3 Lakhs
8 years 45000 80 Lakhs
10 years 45000 1.2 Crores
12 years 45000 1.7 Crores
15 years 45000 2.8 Crores
18 years 45000 4.4 Crores
20 years 45000 6 Crores
21 years 45000 6.9 Crores
22 years 45000 8 Crores
23 years 45000 9.3 Crores
24 years 45,000 10.7 Crores
25 years 45,000 12.4 Crores
26 years 45,000 14.3 Crores
27 years 45,000 16.5 Crores
28 years 45,000 19.1 Crores
29 years 45,000 22 Crores
30 years 45,000 25.3 Crores
32 years 45,000 33.6 Crores
35 years 45,000 51.4 Crores

How to create a SIP plan?

1- Set a goal: Aim for ₹1 crore by 2035, and add 6% inflation, then the actual need will be ₹1 crore.

2- Choose the right mutual fund:

Large-cap funds: 10–12% returns (like SBI Bluechip Fund)
Multi-cap funds: 12–15% returns (like HDFC Flexi Cap Fund)
Investment distribution: 70% equity, 30% debt

3- Adopt a step-up SIP: Increase your SIP by 10–15% each year as your salary increases.

4- Save tax: Investments in ELSS SIPs are tax-deductible under Section 80C.

5- Review: Monitor your fund's performance annually and make changes if necessary.

Benefits of SIPs

The magic of compounding – Money grows exponentially over time.

Reduced risk – The impact of market fluctuations is averaged out.

Flexibility – You can increase or decrease your investment at any time.

Start with a small amount – You can start with as little as ₹500.

Disciplined Investment – ​​Investing every month develops a habit.

Caution

SIPs do not offer guaranteed returns.

Invest after understanding market risks.

Switching funds in a hurry can lead to losses.

Allow at least 7–10 years for the effects of compounding to become apparent.
Consult a financial advisor before investing.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.