SIP has become one of the most trusted tools for the creation of wealth for Indian investors. Among various options, SBI Mutual Fund SIPs remain among the most sought-after due to their good performance, consistency over years, and multiple strategies of investment. Many investors are wondering how much they should invest in SBI SIPs to accumulate ₹1 crore or even ₹2 crores over a long period. Let’s break it down with detailed insights.
Power of Compounding in SIP
The greatest advantage in SIPs is compounded returns. When small amounts are regularly invested in an SIP, the returns accrue gains on their own, highway on either of capital or accrued gains on past few investments. This multiplication effect over a time horizon can work wonders for turning pennies into fortunes. In the case of SBI SIPs, compounding works best when you are invested for a long haul of 20-30 years.
Investment Needed to Touch ₹1 Crore
To create a corpus of ₹1 crore through SIP, one has to take into account the average returns, which generally range between 12% and 15% in the case of equity mutual funds.
- With a SIP of approximately ₹5,000 per month in SBI, one gets close to ₹1 crore in about 25 years.
- By increasing the SIP amount to ₹10,000 per month, one may be able to generate ₹1 crore in approximately 18–20 years.
- If the idea behind setting up the corpus is faster, i.e., 15 years, you will be forced to put in anywhere between ₹15,000 and 18,000 per month.
Investment Needed to Touch ₹2 Crore
If one is aiming perpetually for ₹2 crores, either higher investment amounts would have to be invested or increased length of the investment would have to be chosen.
- With a SIP investment of ₹10,000 per month, one may generate ₹2 crore in about 25–26 years.
- If you are willing to put in ₹15,000–20,000 per month, the ₹2-crore mark can be hit in close to 20 years.
- Contributing higher amounts worth ₹25,000 each month may help you achieve a corpus of ₹2 crore in about 15 years.
SBI SIP Options to Consider
The SBI Mutual Fund offers multiple SIPs depending on the risk appetite and financial goal. Some of the prominent categories are:
- SBI Bluechip Fund (Large Cap) – Suited for conservative long-term investors.
- SBI Small Cap Fund – Riskier but could offer solid returns over the long term.
- SBI Equity Hybrid Fund – Balanced mix of equity and debt for steady growth.
- SBI Multicap Fund – An all-round exposure to large-, mid-, and small-cap companies.
Invested through the SIP mode, these funds can create meaningful wealth over a period of time.
Example Calculation Table
| Monthly SIP (₹) | Duration (Years) | Approx. Returns @12–15% CAGR | Final Value (₹) |
|---|
| 5,000 | 25 Years | 12–15% | ~1 Crore |
| 10,000 | 20 Years | 12–15% | ~1.2 Crore |
| 15,000 | 20 Years | 12–15% | ~2 Crore |
| 20,000 | 18 Years | 12–15% | ~2 Crore+ |
Conclusion
SIP funds managed by SBI can be used to reliably build up an amount of ₹1–2 crore for long-term financial goals. The essence lies in starting early and being consistent and staying invested in the long run. Choosing the right fund and following it through with disciplined investing can turn a small monthly SIP into a huge wealth corpus through the magic of compounding.