₹10,000 SIP for 20 Years: Here’s the Math
SIP: The domestic stock market experienced sharp volatility throughout 2025, which led to only moderate returns for investors. Due to this uneven performance, mutual funds also failed to deliver exceptional gains during the year. However, long-term investors are not overly worried, as short-term market movements have less impact on long-term wealth creation. In fact, mutual fund SIPs (Systematic Investment Plans) have continued to remain a reliable investment option for disciplined, long-term investors.
The returns from SIPs are directly linked to stock market performance. When markets perform well, SIP investments can generate strong returns, while market downturns can temporarily reduce gains or lead to losses. It is important for investors to understand that SIPs do not offer fixed or guaranteed returns. However, staying invested for a longer period significantly reduces risk and helps benefit from compounding. Investors should also note that capital gains tax is applicable on profits earned from mutual fund SIPs.
For example, if an investor puts ₹10,000 per month into a SIP for 20 years, the total investment amount comes to ₹24 lakh. Assuming an average annual return of 12 percent, the investment can grow to around ₹92 lakh, including approximately ₹68 lakh in gains. If the annual return increases to 15 percent, the total corpus can reach nearly ₹1.32 crore, with returns of about ₹1.08 crore, highlighting the power of long-term SIP investing.
