Is five years long enough for this SIP?
Five years of ₹20,000 a month is estimated at ₹16,49,727. Only ₹4,49,727 of that is growth, and a single bad year for the market near the end could shrink it sharply. That is the real risk with short horizons. A common rule of thumb is to use equity SIPs for goals 10 or more years away, and to keep money you need sooner in steadier options such as an FD. At 15 years, the same SIP is estimated at over ₹1 crore.
Frequently asked questions
How much will ₹20,000 SIP give in 15 years?
About ₹1,00,91,520 at an assumed 12% a year, just over ₹1 crore. You invest ₹36,00,000 and around ₹64,91,520 is estimated returns. Returns are not guaranteed.
What does ₹20,000 a month become in 20 years?
Close to ₹2 crore. The estimate at 12% a year is ₹1,99,82,958, from ₹48,00,000 invested. That is a little over four times what you put in, if returns hold near 12%.
Should I step up a ₹20,000 SIP every year?
If income allows. A 10% yearly raise over 15 years takes the estimate from ₹1,00,91,520 to about ₹1,73,67,699, but the SIP grows to about ₹75,950 a month by the 15th year. Check that this fits your expected salary.
How much will ₹20,000 SIP be after 25 years?
At 12% a year, about ₹3,79,52,702. You invest ₹60,00,000, so roughly ₹3,19,52,702 is estimated growth. Over 25 years, inflation also eats into what that money can buy.
