SIP Calculation: How much money will be created after 15 years from an SIP of Rs 4000, see the math

News Topical, Digital Desk : Mutual funds are very popular among investors today. People add them to their portfolios as unsecured schemes. Today, we'll use SIP calculations to understand how much money you'll accumulate if you invest Rs 4,000 per month for 15 years.

calculation

• Investment amount – Rs 4000 per month
• Investment period – 15 years
• Investment return – 12%

If a person invests ₹4,000 every month in a mutual fund investment plan for 15 years, they will earn ₹20,18,000 at a 12% return. Over these 15 years, your principal will grow to ₹7,20,000. Furthermore, you could earn ₹12,98,000 in returns alone. 

Question) How much should one invest in SIP? 

Answer) Amit Suri, founder and fund distributor at AUM Wealth, said that most people consider SIPs just another investment, but the truth is that they're the foundation of your entire financial plan. The earlier you start and the more you can do, the better. People often say, "Do such a SIP that you don't even notice it." I say the opposite. SIPs should feel like something is going in every month. Only then will you feel the results tomorrow.

If you're 25 or 30, hit the accelerator now. Start small or big, but growth is crucial. Think of SIPs like EMIs; the only difference is that EMIs take money out of your pocket, while SIPs build your future. Remember, SIPs aren't just investments; they're a habit. The stronger the habit, the stronger the future.

Paramdeep Singh, founder of Longtail Ventures and a financial services veteran, explains that there's no fixed or universal SIP amount that's suitable for everyone. The right monthly investment depends on your income, essential expenses, risk appetite, and long-term financial goals. As a guideline, young earners should aim to invest at least 20 to 30 percent of their monthly income in SIPs, as compound interest works best when you start early and invest consistently.

For mid-career professionals, the target could be closer to 30 to 40 per cent, which can be allocated across equity, debt and hybrid funds for a better balance of growth and stability.

The most common mistake is waiting until you're earning more before starting. With discipline, even a ₹2,000 SIP for 25 years can create substantial wealth. The real drivers of wealth creation are discipline, tenure, and increasing your SIP amount each year as your income increases.

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