SIP Investment Returns: How ₹10,000 Monthly SIP Grew to ₹4.27 Lakh in Just 3 Years

Systematic Investment Plans (SIPs) in mutual funds have consistently proven to be one of the most effective ways for retail investors to build wealth through disciplined and regular investing. A recent example is the Franklin India Balanced Advantage Fund, which has delivered strong returns in just three years, highlighting the power of compounding and market-linked growth.

SIP of ₹10,000 Turned into ₹4.27 Lakh in 3 Years

If an investor had started a monthly SIP of ₹10,000 in September 2022, by August 2025 the total investment of ₹3.6 lakh would have grown to ₹4.27 lakh. This reflects a handsome gain in a relatively short period of time.

On the other hand, a lump sum investment of ₹1 lakh during the same period would have only grown to around ₹1.42 lakh. The comparison shows why SIPs often outperform lump sum investments in volatile markets by averaging out costs and reducing risk through regular contributions.

About Franklin India Balanced Advantage Fund

The Franklin India Balanced Advantage Fund is an open-ended dynamic asset allocation scheme. It manages an Asset Under Management (AUM) of over ₹2,700 crore as of August 29, 2025.

The scheme has delivered a Compounded Annual Growth Rate (CAGR) of 12.54%, outperforming its benchmark, the NIFTY 50 Hybrid Composite Debt 50:50 Index, which reported a CAGR of 10.19% during the same period.

Investment Strategy: Flexi-Cap and Dynamic Allocation

One of the key features of this fund is its flexible allocation between equity and debt, depending on market valuations.

• In the equity portion, the fund follows a flexi-cap strategy, investing across large-cap, mid-cap, and small-cap companies.

• In the debt portion, it aims to provide stability and balance, making it less vulnerable to short-term equity market fluctuations.

This dynamic approach allows the fund to capture equity market upside while providing a cushion during volatile phases.

Managed by a Team of Experts

The scheme is managed by a team of six fund managers, ensuring a diversified and professional approach to asset allocation. Investors can start a SIP with as little as ₹500 per month, making it accessible for both beginners and experienced investors.

Why SIPs Work Better in the Long Term

While the three-year performance is impressive, analysts emphasize that the real power of SIPs lies in long-term investing.

• Compounding: The longer you stay invested, the more significant the compounding effect becomes.

• Market Averaging: SIPs average out market highs and lows, reducing the impact of volatility.

• Discipline: Regular monthly investments build financial discipline, ensuring consistent wealth creation.

Experts caution that exiting too early or stopping SIP contributions midway can reduce the potential benefits of compounding. Investors are advised to remain invested for at least 7–10 years to maximize returns.

Takeaway for Investors

The example of Franklin India Balanced Advantage Fund shows how even a modest SIP of ₹10,000 per month can generate meaningful wealth in just three years. For long-term goals such as retirement planning, children’s education, or buying a home, SIPs remain one of the most reliable tools for wealth creation.