SIP or Systematic Investment Plan is a way to invest a set amount of money in mutual funds at regular intervals, typically monthly. With even a modest sum, investors can take advantage of compound interest, spread out their costs, and reduce their exposure to market timing risks.
How ₹5,000 SIP Can Grow into Lakhs
If you invest ₹5,000 every month in a SIP:
(Assuming ~12% average annual return in equity mutual funds)
- 10 years → Invested ₹6 lakh → Becomes ~₹11.6 lakh
- 20 years → Invested ₹12 lakh → Becomes ~₹49 lakh
- 25 years → Invested ₹15 lakh → Becomes ~₹95 lakh
That’s the power of compounding. Small monthly SIPs can grow into lakhs over time.
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