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Investing Rs 12,000 per month through an SIP earning an assumed 12% annual return can grow to about Rs 1 crore in nearly 20 years.
Experts warn investors against chasing high returns.
SIP Calculator: A crore is considered a major milestone in a personal finance journey, as each subsequent crore after this typically requires less effort to accumulate. However, building a corpus of Rs 1 crore requires long-term commitment, disciplined investing, and patience. Can an individual earning Rs 50,000 a month create a corpus of Rs 1 crore? Experts say the milestone is achievable, provided investors stay invested for the long term.
Kirang Gandhi, director at KAARMIKA Wealth Mentors, said, “A person who is earning Rs 50,000 per month can create a corpus of Rs 1 crore if he is disciplined, patient and consistent.”
Rs 12,000 Mutual Fund SIP, 20 Years
Gandhi said one should ideally invest at least 20-30% of earnings in monthly mutual fund SIPs (systematic investment plans), increase investment amount by 10-15% annually with every pay hike, preserve an emergency fund, avoid excessive debt and stay invested for the long term.
“Don’t chase high returns, focus on allocation of assets. Review your portfolio annually, moderate your lifestyle inflation and let the power of compounding work for you over 15-20 years to reach your objective,” he added.
Giving numbers, Gandhi said investing Rs 12,000 per month through an SIP earning an assumed 12% annual return can grow to about Rs 1 crore in nearly 20 years.
“If the SIP is increased by 10% every year as salary grows, the target can be achieved even faster,” he added.
Monthly SIPs in India
According to the latest data from the Association of Mutual Funds in India (Amfi), monthly systematic investment plan (SIP) contributions climbed to a record Rs 31,781 crore in June, rising 2.7 per cent from Rs 30,954 crore in May 2026 and 16.5 per cent from Rs 27,269 crore in June 2025.
Retail participation also strengthened on a year-on-year basis. The number of contributing SIP accounts increased to 9.78 crore in June from 8.64 crore a year ago and 9.64 crore in May. SIP assets under management rose to Rs 17.70 lakh crore, compared with Rs 15.31 lakh crore in June 2025 and Rs 17.12 lakh crore in May. SIP assets now account for 21.5 percent of the mutual fund industry’s total assets, up from 20.6 percent a year ago.
Vallum Capital in its report, titled ‘July 2026 Cross-Asset Macro Grid’, said SIP-driven inflows continued to favour large-cap funds in June despite stronger returns from mid- and small-cap segments, indicating that automatic investments are supporting large-cap funds while discretionary money is increasingly moving towards smaller companies.
“Large-Cap received the highest June flows at Rs 9,656 Cr (+Rs 1,188 Cr) despite being the worst performer at -5.4% YTD as well as on a month relative to other caps. SIP inertia sustaining the market’s biggest loser while Mid-Cap saw the sharpest flow acceleration (+Rs 1,336 Cr to Rs 5,460 Cr); rotation into small-cap stays intact,” the report said.
Long-term wealth creation through SIPs hinges on monthly contribution and time in the market. Strategies include consistent investment, increasing contributions annually, and focusing on asset allocation rather than chasing high returns.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
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