How to Become a Crorepati with SIP?
The dream of becoming a "Crorepati" is common, but the path often seems unclear. The secret isn't winning a lottery; it's the discipline of Systematic Investment Plans (SIP) and the magic of Compounding.
The Power of Compounding
Albert Einstein famously called compound interest the "eighth wonder of the world." In an SIP, you earn interest not just on the money you invest, but also on the interest that money earns. Over long periods (10, 15, or 20 years), this creates a snowball effect that turns small monthly savings into a massive corpus.
What is a Good Return Rate?
In India, equity mutual funds have historically delivered returns between 12% to 15% over the long term. While markets fluctuate in the short term, they tend to grow over 10+ years. Our calculator allows you to input your expected rate to see different scenarios.
Example Calculation
If you invest ₹10,000 per month for 20 years at an expected return of 12%:
- Total Amount Invested: ₹24 Lakhs
- Wealth Gain (Interest): ~₹75 Lakhs
- Final Amount: ~₹99 Lakhs (Approx 1 Crore)
Start early, stay consistent, and let your money work for you!