₹3,000 SIP to ₹50 Lakh: Time Required Explained With Calculation
Invest Just ₹3,000 a Month, Know How Long to Reach ₹50 Lakh: Investing in mutual funds through a Systematic Investment Plan (SIP) is one of the easiest ways to build wealth, as it allows you to invest small amounts regularly. With a monthly SIP of ₹3,000 and an annual return of 12%, it would take around 24 years to build a fund of ₹50 lakh.
Over 24 years, your total investment would be ₹8.64 lakh, while the total value of the investment could grow to about ₹50.18 lakh. This means the returns alone would be around ₹41.54 lakh. Actual returns may vary depending on market performance.
Common mistakes SIP investors should avoid:
Expecting quick returns: SIPs work best over the long term. Short-term fluctuations should not discourage investors.
Stopping SIPs due to rising expenses: Investors should plan investments wisely. A simple rule is the 50:30:20 formula—50% for needs, 30% for wants, and 20% for savings and investments.
Exiting during market falls: Market downturns are a good time to continue SIPs, as investors get more units at lower prices.
Ending SIPs too early: Many investors stop SIPs after 3–7 years. Staying invested longer can help achieve long-term goals like education or retirement.
