SIP calculation: Want to become a 'crorepati' in 10 years? Find out how much you'll need to invest in SIP each month..

Everyone dreams of accumulating a large corpus, which can help them easily achieve future goals—such as planning for retirement or buying a new home. While investments like Fixed Deposits (FDs) or gold are safe, they take a very long time to build a substantial fund of ₹1 crore. In this context, a Systematic Investment Plan (SIP) in mutual funds has emerged as an excellent and practical solution.

How to build a corpus of ₹1 crore
If you aim to build a corpus of ₹1 crore over the next 10 years (a decade), you need to start a monthly SIP for a specific amount, beginning today. The exact amount, however, depends entirely on the annual return (CAGR) you earn on your portfolio.

How much should you invest via SIP each month to reach ₹1 crore?
Using a mutual fund calculator, let’s look at how much you would need to invest from your own pocket each month:

*   At a 12% annual return: If your portfolio grows at an annual rate of 12%, you would need to invest ₹43,150 per month via an SIP to reach the ₹1 crore goal. Over 10 years, your total accumulated wealth would grow to approximately ₹1,00,25,431.

*   At a 14% annual return: If the market performs better and you earn a 14% return, the burden of your monthly investment will decrease slightly. In this case, you would need to invest ₹38,250 per month. With this, you would accumulate a total of ₹1,00,24,995 after 10 years.

* At a 16% annual return: If your portfolio performs exceptionally well, delivering an annual return of 16%, a monthly SIP of just ₹33,750 would allow you to accumulate ₹1 crore (specifically, ₹1,00,05,913) over a period of 10 years.

Why are equity mutual funds essential?
Experts believe that an annual return exceeding 10% is generally achievable only through equity mutual funds, not through debt schemes. Therefore, if your goal is to accumulate ₹1 crore over a medium-term horizon—such as 10 years—a significant portion of your portfolio should be allocated toward equity schemes.

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