SIP is an easy and reliable tool to create a large corpus in the long term with small investments.

SIP Investment: Systematic Investment Plans (SIPs) are the strongest and most reliable engine of growth for the mutual fund industry. Last year (2025), SIP investments crossed Rs 3 lakh crore for the first time. This shows that amid the turmoil in the stock market, investors have shown maximum confidence in this option of systematic investment. SIP is an easy and reliable tool to create a large corpus in the long term through small investments. If you make an SIP of Rs 10,000 every month in a mutual fund and get an average annual return of 12%, then this investment can reach approximately Rs 47 lakh in 15 years.

How much fund will be created in 5, 10 and 15 years?

SIP is an easy way to invest in mutual funds. Through SIP, investors can invest a fixed amount in mutual funds every month, quarterly, or yearly. It promotes regular and disciplined investing. This allows small investments to build a large corpus over the long term. Let's understand this with statistics. Suppose you make a SIP of just Rs 10,000 every month. If this investment earns an average annual return of 12%—which is considered a normal return in mutual funds—then how much could your corpus become in 5, 10, and 15 years? Let's look at the calculations.

In 5 years

Monthly SIP: Rs 10,000

SIP Returns: 12%

Total SIP investment in 5 years: Rs 6 lakh

Estimated funds after 5 years: Rs 8.11 lakh

In 10 years

Total investment: Rs 12 lakh

Estimated funds after 10 years: Rs 22.40 lakh

In a decade, the values of your SIP will almost double the total investment.

In 15 years

Total investment: Rs 18 lakh

Estimated Fund: Rs 47.59 lakh

In 15 years, the value of your SIP will increase by almost three times the total investment.

The magic of compounding is hidden in SIP

SIPs are a good option for long-term investing. AK Nigam, director of BPN Fincap, says its biggest advantage is compounding (earning interest on interest). This allows the fund to grow gradually over time. By investing over a long period of time, SIPs allow you to take advantage of market fluctuations. This also reduces the average investment cost. It eliminates the need to invest a large sum of money at once.

He says, "By investing small amounts each month, you can gradually build a large fund. This approach is also low-risk. However, it's important to keep in mind that a fund's past performance is no guarantee of its future performance. Therefore, investors should choose funds based on their risk tolerance."

 PC:Punjab Kesari