Investing in mutual funds through a Systematic Investment Plan (SIP) can be one of the most lucrative ways to build wealth over time. A great example of this strategy is how a modest monthly SIP of ₹10,000 turned into a staggering ₹1.60 crores in 20 years. In this blog post, we will explore the details of such an investment, which funds to consider, the best platforms to use, and a complete roadmap to replicate this success.
Case Study: ₹10,000 SIP turned into ₹1.60 crore
Here is a quick overview of how a disciplined ₹10,000 monthly SIP turned into ₹1.60 crore in 20 years:
Total investment amount: ₹24,00,000 (₹10,000 * 12 * 20)
Value of corpus after 20 years: ₹1,60,00,000
Annual returns: Around 15% CAGR (Compound Annual Growth Rate)
Top Mutual Funds that can deliver similar returns
To achieve such growth, it is essential to choose the right mutual funds with a track record of strong performance and strong fundamentals. Here are three such funds that can potentially deliver high returns in the long term:
Mirae Asset Emerging Bluechip Fund
Category: Large and mid-cap fund
Average 10-year return: ~19%
Investment logic: Invests in a mix of large and mid-cap stocks, balancing risk and reward.
Axis Bluechip Fund
Category: Large-cap fund
Average 10-year return: ~15%
Investment logic: Focuses on high-quality large-cap companies with stable growth potential.
SBI Small Cap Fund
Category: Small-cap fund
Average 10-year return: ~20%
Investment logic: Suitable for aggressive investors looking for high growth from smaller companies.
Choosing the right investment platform
Choosing the right platform is crucial for hassle-free investing. Here are three ideal platforms for SIP investing:
Groww
Features: User-friendly interface, quick investment options, and detailed performance tracking.
Recommend: Ideal for beginners and those looking for a simple platform to manage SIPs.
Zerodha Coin
Features: Direct mutual fund investments with zero commissions. Integrated with Zerodha’s stock trading platform.
Recommend: Great for experienced investors who want to invest directly and avoid commissions.
Kuvera
Features: Goal-based investing, tax optimization, and a solid advisory service.
Recommend: Perfect for investors who want a more structured approach to achieving long-term goals.
Step-by-step roadmap to get to ₹1.60 crore
Follow these steps to replicate the same success with your investments:
Start early and be consistent
Start your SIP as early as possible to leverage the power of compounding. Even a small amount grows exponentially over time.
Choose the right fund
Choose a fund based on your risk appetite, goals, and past performance. Consider a mix of large-cap, mid-cap, and small-cap funds for a diversified portfolio.
Invest through a reliable platform
Platforms like Groww, Zerodha Coin, or Kuvera offer intuitive SIP options and tracking tools.
Review your portfolio annually
Keep a track of your investments and rebalance when needed. While SIPs are for the long term, you should evaluate fund performance every year to ensure they align with your goals.
Be disciplined and avoid withdrawals
Avoid the temptation to withdraw during market downturns. SIPs work best when you stay invested during volatility.
Why investing for the long term works
Turning ₹10,000 into ₹1.60 crore is possible due to a combination of time and compounding returns. Over a period of 20 years, even modest returns can grow significantly due to reinvestment of profits. This approach is ideal for those who have long-term financial goals such as retirement planning, children’s education or wealth accumulation.
Conclusion
A disciplined SIP of ₹10,000 per month can turn into ₹1.60 crore in 20 years, provided you choose the right funds and stay consistent. By following the roadmap mentioned above and choosing the right platform, you too can achieve such impressive financial goals.
