Compounding with a rising SIP
Investors who begin with ₹25,000 each month and commit to boosting their contributions by 12% every year can potentially grow their wealth considerably over a long horizon. The mechanism combines regular savings with the momentum of compounding and inflation-adjusted top-ups to lift the overall corpus.
Assumptions behind the projection
- Monthly starting amount: ₹25,000
- Annual top-up rate: 12% to keep savings pace ahead of inflation
- Asset focus: a diversified equity mutual fund or similar growth-oriented scheme
- Investment horizon: long term (15 to 25 years)
- Estimated annual return: variable, often in the mid-to-high teens depending on markets
Why ₹28 crore could be reachable
Under this framework, steady rising contributions and the power of compounding can push the eventual corpus toward the ₹28 crore mark by the end of the chosen horizon, assuming favorable market conditions and disciplined investing.
Important considerations
- Past performance does not guarantee future results
- Tax rules differ for equity funds and SIPs; plan accordingly
- Adjust the plan for risk tolerance and changing financial goals
