Do you how much amount you will get after 20 years by increasing your monthly SIP amount?
If you have a SIP setup for 15,000 per month, you can invest it smartly to get a steady income every month for years. Let’s understand how a mutual fund and Systematic Investment Plan (SIP) can help you do this.
Discover how a ₹15,000 monthly SIP with a 10% yearly step-up can grow to ₹4.17 Cr in 20 years. Learn the power of compounding and smart investing.
What is SIP (Systematic Investment Plan)?
SIP (Systematic Investment Plan) is a simple and smart way to invest in mutual funds. Instead of investing a large amount at once, SIP allows you to invest a fixed amount regularly — usually monthly or weekly.
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After retirement, a regular monthly income from your investment can help you to cover monthly expenses, medical expenses, maintain good lifestyle and it will avoid financial stress.
How much amount you will get at 15,000 Rs investment?
With the right mutual fund and SIP plan, a 15,000 Rs on monthly investment can grow over time and give you a return of 2.27 crore in 20 years with considering 15% annual return, as we seen in this article. If you still haven’t read this article. You can go ahead and read that article first and come back to this article for better understanding.
Also Read: How much you will get after 20 Years, if you made 15,000 Rs as SIP
Important Note: These numbers are based on estimated returns. Actual returns can vary depending on market conditions and the fund’s performance.
How much amount you will get at 15,000 Rs as SIP + 10% Step-up
What is SIP Step-up investment?
SIP step-up is a feature in mutual fund investment that allows us to automatically increase the SIP amount at regular intervals, such as every year or every six months or every month. Instead of investing a fixed 15,000 Rs for next 20 years, for example if I choose 10% yearly step-up. On first 12 months 15,000 Rs will be invested in mutual fund. And for second year onward for 13th to 24th month SIP amount will be increased from 15,000 to 16,500 (i.e., 10% of 15,000 = 1500 Rs will be increased). On 3rd year onward our SIP amount will be increased from 16,500 to 18,150 (i.e. 10% of 16,500 = 1650 Rs will be increased).
- You start with ₹ 15,000 SIP
- You choose 10% every year
- So, in 1st year 15,000/month
- In year 2 – 16,500/month
- In year 3 – 18,150/month
- By 10th year you will be investing 35,000/month
- By 20th year you will be investing 91,000/month
Start SIP with ₹15,000/month and grow it 10% yearly—reach ₹91,000/month by year 20. See how step-up SIP boosts your wealth with compounding power.
How your 15,000 Rs with 10% Step-up Investment would grown
If you are investing 15,000 rupees with Step-up as a monthly SIP for 20 years starting from 1st January 2025 in one of the mutual funds gave 15% yearly return.
At 5th years in Dec 2029
Investment: Rs. 11,00000
Interest: Rs. 5,00,000
Total Portfolio Size: Rs. 16,00,000
At 10th years in Dec 2034
Investment: Rs. 28,00,000
Interest: Rs. 30,00,000
Total Portfolio Size: Rs. 58,00,000
At 15th years in Dec 2039
Investment: Rs. 57,00,000
Interest: Rs. 1.09 Crore
Total Portfolio Size: Rs. 1.66 Crore
At 20th years in Dec 2044
Investment: Rs. 1.03 Crore
Interest: Rs. 3.14 Crore
Total Portfolio Size: Rs. 4.17 Crore
Discover how a ₹15,000 monthly SIP with a 10% yearly step-up can grow to ₹4.17 Cr in 20 years. Learn the power of compounding and smart investing.
| Year | Monthly SIP (₹) | Total Investment (₹) | Estimated Returns (₹) | Portfolio Value (₹) |
|---|---|---|---|---|
| Year 5 | ₹21,900 | ₹11,00,000 | ₹5,00,000 | ₹16,00,000 |
| Year 10 | ₹35,000 | ₹28,00,000 | ₹30,00,000 | ₹58,00,000 |
| Year 15 | ₹56,500 | ₹57,00,000 | ₹1.09 Crore | ₹1.66 Crore |
| Year 20 | ₹91,000 | ₹1.03 Crore | ₹3.14 Crore | ₹4.17 Crore |
This investment of 1.03 Crore will become 4.17 crore in 20 years. This is the power of compounding in mutual fund investment. At 20th years you would receive a yearly interest income of 57 lakhs. On monthly basis you would receive around 4.75 lakhs rupees at 20th year. At 20th year your portfolio would have increased 300% from inception to date by considering 15% yearly return. So, start early make the most of compounding. Mutual fund investment with good return can grow your significantly over time. This is the power of long-term investing and mutual fund growth. Let your money work for you.
READ MORE: SIP Return Calculator – How to Calculate Your SIP Returns with Step-Up SIP & Types
Benefits of Using SIP in Mutual Funds
- Begin with small amount of investment as 500 Rs per month.
- It will helps build huge portfolio in future.
- SIP reduces the risk on investment by entering into wrong time into the market.
- Your hard eared money will work for you and it will generate interest income for you.
- You buy more units when prices are low to average out the cost, if needed
Benefits of Step-up in Mutual Funds
- As your salary increase over time, your SIP also grows automatically.
- Small yearly increase can significantly increase your total investment value.
- You can choose how much and how often to step-up either by a fixed amount or percentage.
- Helps build faster without feeling the pressure of our huge amount increase in monthly investments.
SIP is best for conservative, fixed budget investors
Step-up SIP is best for Growing income, goal-based investors.
Even a 10% yearly increase can nearly double your corpus over 20 years.
The longer you stayed invested, the more your money grows due to compounding. You can start, stop, increase or decrease your SIP anytime, it’s completely flexible. Whether it’s retirement, a children’s education, or buying a house, SIP is a perfect for planning big financial life goals. Investing through Sip can give better than keeping money in a saving account also you can invest small amounts regularly and build a big corpus over time. Start your SIP early, stay consistent and let time and compounding do the rest. Your future self will thank you.
Disclaimer: This is not an investment or financial advice. Always consult a financial advisor before investing to choose the right fund and plan based on your needs and risk level.
READ MORE: 20 Factors to Consider Before Investing in Mutual Funds
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