Why the second ten years matter more
In the first 10 years, ₹1,000 a month is estimated to grow to ₹2,32,339. Keep going another 10 years and it reaches about ₹9,99,148, just short of ₹10 lakh. So the second decade adds roughly ₹7,67,000, more than three times what the first decade built, even though you invest the same ₹1,20,000 in each. That is compounding at work, and it is why stopping a small SIP after a few years costs far more than it seems.
Frequently asked questions
How much will ₹1,000 SIP become in 20 years?
About ₹9,99,148 at an assumed 12% yearly return. You invest ₹2,40,000 over those 20 years, and around ₹7,59,148 is estimated returns. The real figure depends on how the market behaves.
How long does a ₹1,000 SIP take to reach ₹10 lakh?
At 12% a year it gets very close at 20 years, about ₹9,99,148. By 25 years the estimate is ₹18,97,635. So plan for a little over 20 years if ₹10 lakh is the target.
What if I increase my ₹1,000 SIP by 10% every year?
Over 15 years, a 10% yearly step-up takes the estimate to about ₹8,68,385, against ₹5,04,576 without it. Your monthly SIP would be about ₹3,798 in the 15th year, and total investment about ₹3,81,270.
Is ₹1,000 a month enough for a child's education?
It helps, but it may not cover everything alone. Over 15 years, ₹1,000 a month is estimated at ₹5,04,576 at 12% a year. Fees keep rising, so increase the SIP when your income goes up.
