SIP Investment : Earn a Crore in 20 Years, The Power of Compounding Interest

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Are you ready to embark on a journey towards financial success? Imagine turning a modest investment into a crore (ten million) in just two decades. It’s not a distant dream; it’s a realistic goal with the power of Systematic Investment Plans (SIPs). In this blog, we’ll show you how much you need to invest each month to earn a crore in 20 years through SIPs.

Understanding SIP:

SIP is a disciplined and hassle-free way of investing in mutual funds. Instead of investing a lump sum, you commit to a fixed monthly investment amount. This approach not only reduces the burden on your wallet but also harnesses the magic of compounding.

The Power of Compounding:

Before we dive into the calculations, let’s understand the power of compounding. In SIPs, your invested money earns returns, and those returns generate additional returns. Over time, this snowball effect can significantly grow your investments.

Calculating the Monthly Investment:

Earning a crore in 20 years is achievable with the right monthly investment. Here’s how you can calculate it:

Decide on the Expected Annual Return: Typically, SIPs in equity mutual funds have provided an average annual return of around 12% to 15%. Let’s assume a conservative 12% annual return for our calculation.

Use the Future Value Formula: The future value (FV) formula helps us determine the required monthly investment (PMT).

FV = Future Value (1 crore in this case)

PV = Present Value (your initial investment, which is zero in SIP)

r = Monthly interest rate (annual interest rate / 12)

n = Number of months (20 years × 12 months)

Plug in the Values:

FV = 1,00,00,000 (1 crore)

PV = 0

r = (0.12 / 12) = 0.01 (12% annual return)

n = 20 years × 12 months = 240 months

Calculate PMT:

PMT = 1,00,00,000 × [0.01 × (1 + 0.01)^240] / [(1 + 0.01)^240 – 1]

PMT ≈ 6,206

You would need to invest approximately 6,206 rupees every month in SIPs with a 12% annual return to accumulate 1 crore in 20 years.


Earning a crore in 20 years with SIPs is attainable with dedication and a well-planned investment strategy. Remember that returns may vary, and it’s essential to stay committed to your SIP plan. Start your journey towards financial abundance today by investing systematically and reaping the benefits of compounding. With the right approach, you can turn your financial dreams into reality. Happy investing!



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