Is It True That A Monthly SIP of Rs 6000 For 20 Years Can Give You Rs 1 Cr In Return? If Yes, Then How?

It is possible to reach Rs 1 Cr corpus with Rs 6000 per month SIP but not easily feasible. To achieve the goal, the required return per annum would be around 18% approximately. Many forget that the real game is discipline. Skipping SIPs or stopping when markets fall can easily derail this target. Another point people ignore is that inflation does not stop. So while 1 crore sounds big today, you will need that corpus to outpace inflation for it to truly hold value when you need it. Even small top-ups help you stay ahead of rising costs.

SIP Calculator Breakdown: Rs 6K, Rs 8K, or Rs 10K - What's Realistic for Rs 1 Crore?

An equity SIP of Rs 6000 per month can yield Rs 1 cr after 20 years only if the Compounded Annual Growth Rate (CAGR) is 18%.

"A SIP of Rs 8000 per month will give 1 cr after 20 years at a CAGR of 15%. This is possible, but still an optimistic scenario. A more realistic and slightly conservative estimate would be to do a SIP of Rs 10000 per month for 20 years. This will result in Rs 1 cr at a CAGR of 12%. This appears more achievable," commented Gaurav Goel (Entrepreneur and SEBI-Registered Investment advisor).

One should keep in mind that there are no guarantees in equity markets. Investors should keep the equity risk and their risk profile in mind before investing in equities.

Achieving Rs 1 Crore with SIP: The Power of Annual Step-Up Investments

Dr. Vikas Gupta, CEO & Chief Investment Strategist, OmniScience Capital says, No, it's highly unlikely that a fixed Rs 6,000 monthly SIP will grow to Rs 1 crore in 20 years. For that to happen, the investment would need to consistently deliver a 17% CAGR over two decades - which is an unrealistic expectation in most real-world scenarios.

"With a more reasonable long-term assumption of 12% CAGR, a Rs 6,000 SIP would grow to approximately Rs 55 lakhs in 20 years. However, if you follow a 10% annual step-up SIP strategy - increasing your SIP by 10% each year - then yes, you could potentially reach a corpus of around Rs 1.11 crore at a 12% CAGR," Dr. Vikas Gupta added.

The key is not just starting early, but also increasing your investment capacity over time in line with your income growth.

Your 20-Year SIP Roadmap: From Rs 6K to Rs 1 Crore with Compounding

"Investing Rs 6,000 a month in a SIP for 20 years can potentially grow into Rs 1 crore-thanks to the power of compounding. This is based on an assumed average annual return of around 12%, which long-term equity mutual funds have historically delivered. But it's not just about chasing returns-diversifying across different categories like flexi-cap, mid-cap, and index funds can help manage risk and improve overall portfolio performance," said Sumit Sharma, Founder, Radian Finserv.

With discipline, patience, and smart diversification, small monthly investments can turn into significant long-term wealth.

Small SIP, Big Dream: The Rs 1 Crore Goal Explained with Real Data

The short answer is - it is possible to reach Rs 1 Cr corpus with Rs 6000 per month SIP but not easily feasible. To accumulate Rs 1 Cr with Rs 6000 per month investment, the required return per annum would be around 18%, here's how, as per CA Foram Naik Sheth - KMP Wealth Management Solutions NPV Associates LLP.

• SIP Amount: Rs 6,000/month
• Investment Tenure: 20 years
• Required Return: 18% per annum
• Maturity Value: Rs 1 crore

While not impossible, achieving a consistent 18% annual return over 20 years is highly ambitious. Here's how the NIFTY 50-India's benchmark equity index-has performed historically (approximately):

• 10-Year CAGR: 11.37%
• 20-Year CAGR: 12.34%
• Since Inception (1995): 11.42%

To reach that 18% return, your investment would need to be:

• Allocated to high-risk, aggressive funds (e.g., small-cap, sectoral, or thematic funds)
• Subject to higher volatility
• Vulnerable to market downturns and potential losses.

"At a 12% annual return (in line with long-term equity market averages), Rs 6,000 monthly SIP for 20 years would grow to around Rs 50-55 lakhs. To reach Rs 1 crore with a 12% return, you'd need to invest about Rs 11,000-12,000 per month instead," added CA Foram Naik Sheth - KMP Wealth Management Solutions NPV Associates LLP.

What Most Investors Miss About the Rs 6,000 SIP to Rs 1 Cr Journey?

"Getting a 1 crore corpus from a Rs 6,000 monthly SIP over 20 years is possible and doable if you choose your equity mutual funds wisely and stay invested through ups and downs. Here, you invest Rs 6,000 every month for 20 years; the total money you put in is about Rs 14.4 lakh. To grow this amount to 1 crore, your investment must compound at a rate that multiplies your money about seven times, which works out to roughly 17% CAGR," commented Trivesh D, COO Tradejini.

"Also, the first two years should be left untouched on review to let the fund prove itself. After that, review every six months. Look at what made you invest in the first place. If that changes, adapt another plan," he further added.

Building wealth is not about chasing big returns overnight but about staying steady and letting compounding do its work.

The Harsh Truth: Rs 6,000 SIP Won't Always Lead to Rs 1 Crore

Assuming a long-term CAGR (Compounded Annual Growth Rate) of 15%, a monthly SIP of Rs 6,000 over 20 years can indeed grow to approximately Rs 1 crore. This is mathematically accurate and theoretically feasible, especially in high-performing equity mutual funds.

Navin Jain, Cofounder & CEO, NeoNest Finserve says, however, 15% annualized return is optimistic, not guaranteed. A more conservative and historically reliable expectation is 10-12% CAGR, which would result in a corpus of around Rs 45-Rs 52 lakhs, and not Rs 1 crore. To realistically achieve Rs 1 crore, investors should either:

• Step up their SIP annually to account for inflation and income growth, or
• Increase the base SIP to Rs 10,000-Rs 11,000/month at 12% CAGR.

"Rs 6,000/month can become Rs 1 crore in 20 years - but only if equity markets deliver 15%+ CAGR. A prudent investor probably would plan for lower returns and increase the contribution over time to reach the Rs 1 crore goal with higher certainty," commented Navin Jain.

Conclusion

In conclusion, Rs 1 crore from Rs 6,000/month SIP is theoretically possible, but it requires consistently high returns (18% p.a.), which come with higher risk and uncertainty. For most investors, it's better to aim for more realistic returns (10-12%) and adjust the SIP amount or investment horizon accordingly. Key success factors would include choosing the right mutual funds, maintaining investment discipline through market cycles, and staying invested for the full duration without interruptions.

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