Just Got My First Job: How Much SIP Do I Need to Build ₹1 Crore in 15 or 20 Years?

Getting your first job marks an important milestone, and it often prompts individuals to start planning their finances. An investment option for long-term goals is the Systematic Investment Plan (SIP), which involves investing a fixed amount regularly in mutual funds.

SIPs help you build wealth over time by investing a fixed amount regularly in mutual funds. But how much do you need to invest each month if your goal is to accumulate ₹1 crore in the long run?

Let’s explore the SIP amounts required to achieve ₹1 crore in 20 years and 15 years, assuming an average return of 12% per annum.

SIP Required to Reach ₹1 Crore in 20 Years

If you have just started earning and can commit to long-term investments, a 20-year horizon gives your money ample time to grow through the power of compounding.

• Target Corpus: ₹1 crore
• Expected Annual Return: 12%
• Investment Period: 20 years

Using a SIP calculator, the required monthly SIP to accumulate ₹1 crore in 20 years is approximately ₹11,000 per month. Here the invested amount would be ₹26,40,000, and the estimated returns are ₹83,50,627.

This can be an achievable amount for a salaried individual, especially someone who has just begun working. As your income increases, you can also step up your SIP amount to reach your goal faster or build an even larger corpus.

SIP Required to Reach ₹1 Crore in 15 Years

If you want to achieve the same ₹1 crore target in a shorter time frame like 15 years, you’ll need to invest more each month.

• Target Corpus: ₹1 crore
• Expected Annual Return: 12%
• Investment Period: 15 years

To accumulate ₹1 crore in 15 years, the monthly SIP amount required would be around ₹20,000 per month. Here the invested amount would be ₹36,00,000, and the estimated returns are ₹64,91,520.

While this is nearly double the amount required for a 20-year goal, it can still be a practical amount for someone in their early-to-mid career phase. Moreover, starting early and increasing SIPs annually in line with salary hikes can make this goal easier to achieve.

Why Start Early?

• Compounding Works Best With Time: The earlier you start, the more you benefit from compounding, where your returns start earning returns.
• Lower Monthly Burden: A longer investment period reduces the amount you need to set aside monthly.
• Disciplined Saving Habit: SIPs encourage regular saving and reduce the temptation to time the market.

Also Read: SIP: ₹5,100 Monthly for 15 Years vs ₹11,000 for 7 Years – Which Gives Better Returns?

Conclusion

If you're a first-jobber dreaming of building ₹1 crore in wealth, by investing ₹11,000 monthly for 20 years or ₹20,000 monthly for 15 years, you can reach your goal, thanks to the magic of compounding. You can start small and stay consistent.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.