Now Reading: Rs 25,000 step-up SIP can build Rs 10 crore corpus in 25 years
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Rs 25,000 step-up SIP can build Rs 10 crore corpus in 25 years
A monthly SIP of Rs 25,000, increased by 10% each year, can build a corpus of over Rs 10 crore in 25 years, assuming a 12% annual return, Livemint reports. Total investment…
The Story in Brief
A monthly SIP of Rs 25,000, increased by 10% each year, can build a corpus of over Rs 10 crore in 25 years, assuming a 12% annual return, Livemint reports. Total investment would be about Rs 2.95 crore, with wealth gains of Rs 7.73 crore, making the final corpus roughly Rs 10.68 crore.
If the annual step-up is reduced to 5%, reaching a similar corpus takes about 28 years, with a lower total investment of Rs 1.75 crore. In a separate illustration, a flat Rs 15,000 monthly SIP for 30 years at 12% returns can yield around Rs 5.29 crore, with Rs 54 lakh invested and Rs 4.75 crore from compounding. Actual returns are market-linked and not guaranteed.
The Indian Opinion
These SIP calculators make crorepati retirement look inevitable, but they rest on a 12% annual return assumption that no one can promise. Mutual funds are market-linked, and a bad decade can shatter the compounding fantasy. The real lesson is not the headline corpus but the discipline of stepping up contributions as income rises. Instead of chasing Rs 10 crore, ask what monthly outflow you can sustain and whether the fund has beaten its benchmark over 10 years. The number that settles it is your actual CAGR, not the calculator's.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
