Overview

• Systematic Investment Plans (SIPs) in mutual funds are a disciplined way to achieve a Rs 1 crore corpus, leveraging monthly investments and compounding growth.
• Step-up SIPs, which increase contributions by 10% annually, reduce the initial investment burden and align with income growth over time.
• At a 12% annual return, an initial SIP of Rs 4,800 with a 10% annual step-up can reach Rs 1 crore in 20 years, while a flat SIP of Rs 23,000 achieves the same in 15 years.
• Under a 15% return assumption, a Rs 5,000 monthly SIP can accumulate Rs 1 crore in 22 years, while Rs 10,000 and Rs 20,000 SIPs achieve the target in 18 and 14 years respectively.
• Inflation significantly erodes purchasing power, with Rs 1 crore in 20 years equating to approximately Rs 31.18 lakh in today's terms, emphasizing the need for inflation-adjusted planning.