Rs 20,000 Monthly SIP: How Much Wealth Can It Build?

Investors have been consistently investing heavily in mutual funds through a systematic investment plan (SIP) every month. According to Amfi data, the total amount collected through SIPs during January 2026 stood at Rs 31,002 crore, 17.5 per cent higher than collections during the same month last year. SIPs, as per Amfi, have been gaining popularity among Indian mutual fund investors, as they help in rupee cost averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market.

This growing popularity for SIPs raises an interesting question: how much wealth can a disciplined monthly investing actually create over time? We did some math around how powerful a Rs 20,000 SIP can be in creating wealth for investors. The answer depends largely on two factors: time and rate of return.

For calculation purposes, we assumed three annual return scenarios– 10 per cent, 12 per cent and 14 per cent. As mutual fund returns are never guaranteed, analysing multiple return assumptions provides a realistic picture of how wealth can compound over time.

How much can an SIP of Rs 20,000 per month grow?

If an investor commits Rs 20,000 every month to equity mutual funds, the results over different time horizons are striking.

At a 10 per cent annual return, the corpus grows to about Rs 41.3 lakh in 10 years, Rs 83.6 lakh in 15 years, and Rs 1.53 crore in 20 years. Extend the investment to 30 years, and the corpus rises sharply to a massive Rs 4.56 crore.

At a 12 per cent annual return, the numbers improve significantly. The investment grows to Rs 46.5 lakh in 10 years, crosses Rs 1 crore in 15 years (Rs 1.01 crore), and is about Rs 2 crore in 20 years. Over a 30-year period, the corpus can expand to about Rs 7.06 crores.

At a more optimistic 14 per cent return, the power of compounding becomes even more visible. The SIP grows to Rs 52.4 lakh in 10 years, Rs 1.23 crore in 15 years, and Rs 2.63 crore in 20 years. For an investment horizon of over 30 years, the corpus can go  over Rs 11.11 crore.

The longer the investment horizon, the sharper the acceleration in growth. A large part of the final wealth is accumulated in the later years due to compounding, provided investors continue investing over a long term.

How compounding works?  

It ensures that returns earned on investments are reinvested, and in turn, they also start earning returns. This snowball effect becomes more powerful over long investment horizons.

For example, at 12 per cent returns, the corpus increases from about Rs 1.01 crore at 15 years to nearly Rs 2 crore at 20 years. That means almost Rs 1 crore is added in just five years, that too without increasing the monthly investment. This shows why staying invested and consistently disciplined investing is often more important than trying to time the market.

How much time it takes to reach the target corpus?

Next, we calculated how much time it would take to reach different wealth targets with a Rs 20,000 monthly SIP. Here’s what the numbers say.

At 12 per cent annual returns, a Rs 20,000 monthly SIP can build Rs 1 crore in about 15 years and Rs 2 crore in around 20 years, Rs 5 crore in around 27 years and Rs 10 crore in 33 years. Similarly, at 14 per cent returns, Rs 1 crore can be achieved in around 14 years, and Rs 10 crore in 29 years. Even at a lower 10 per cent return, Rs 1 crore becomes achievable in about 16.5 years.