SIP Your Way to ₹1 Crore: The ₹5,000 Monthly Plan

Gathering ₹1 crore in a Systematic Investment Plan (SIP) needs a planned approach. With an average return of 12% per annum, which is common for most mutual funds, a ₹5,000 SIP every month can assist in achieving this amount. By using a mutual fund return calculator, it can be estimated that it would take around 25 years and 7 months to gather ₹1 crore. This is calculated using the formula for future value of SIP, taking into account the monthly investment, rate of return, and time. Investors need to select mutual funds with good consistent performance and match their investment horizon with the growth potential of the fund. Periodic monitoring and rebalancing of the investment portfolio can also ensure this lofty financial target.

Source: Groww