1 week ago

₹10 Crore in 15 Years: SIP Math, Returns and Inflation

₹10 crore in 15 years: Can your SIP really grow that much? How much should you invest every month? Check out the maths · livemint.com

Aman wants to save ₹10 crore over the next 15 years.

He plans to invest money every month through a mutual fund SIP.

If he invests the same amount each month and earns about 12% annually, he may need nearly ₹2 lakh per month.

He could instead start with about ₹1.15 lakh per month and increase the investment by 10% every year.

Under that plan, his monthly investment could reach about ₹4.37 lakh in the final year.

The result depends heavily on how much the investments earn.

Lower returns mean he must invest more, while higher returns mean he may invest less.

Inflation also means that ₹10 crore in 2041 will buy much less than ₹10 crore buys today.

Key facts

Target corpus: ₹10 crore after 15 years
Flat SIP at 12%: Approximately ₹1.98 lakh to ₹2 lakh per month
Step-up SIP: Starts at about ₹1.15 lakh monthly and rises 10% annually
Final-year step-up amount: Approximately ₹4.37 lakh per month
Return sensitivity: Required monthly SIP ranges from about ₹2.87 lakh at 8% returns to ₹1.48 lakh at 15% returns
Inflation assumption: At 6% inflation, ₹10 crore in 15 years would have purchasing power of roughly ₹4.2 crore today
Inflation-adjusted target: Approximately ₹24 crore would be needed to match ₹10 crore's current purchasing power

livemint.com · 1 week ago