Achieving Rs 1 Crore with SIP: The Power of Annual Step-Up Investments

Dr. Vikas Gupta, CEO & Chief Investment Strategist, OmniScience Capital says, No, it’s highly unlikely that a fixed Rs 6,000 monthly SIP will grow to Rs 1 crore in 20 years. For that to happen, the investment would need to consistently deliver a 17% CAGR over two decades – which is an unrealistic expectation in most real-world scenarios.

“With a more reasonable long-term assumption of 12% CAGR, a Rs 6,000 SIP would grow to approximately Rs 55 lakhs in 20 years. However, if you follow a 10% annual step-up SIP strategy – increasing your SIP by 10% each year – then yes, you could potentially reach a corpus of around Rs 1.11 crore at a 12% CAGR,” Dr. Vikas Gupta added. The key is not just starting early, but also increasing your investment capacity over time in line with your income growth.

Read more at: https://www.goodreturns.in/personal-finance/investment/is-it-true-that-a-monthly-sip-of-rs-6000-for-20-years-can-give-you-rs-1-cr-in-return-if-yes-then-h-1442163.html