What does a ₹10,000 monthly SIP compound to over different time horizons?
Scenario
A 30-year-old starts a ₹10,000 monthly SIP into a Nifty 500 index fund at 12% assumed nominal returns; compare terminal corpus at 15, 20, 25, and 30 years
Inputs
- Horizons years
- 15,20,25,30
- Monthly sip INR
- 10000
- Assumed return %
- 12
Calculation
- 1.
SIP-FV factor at 12%, 15 years
((1.01)^180 − 1) ÷ 0.01 → 502x
- 2.
Terminal corpus at 15 years
₹10K × 502 → ₹50.20 L
- 3.
Terminal corpus at 20 years
₹10K × 989 → ₹98.90 L
- 4.
Terminal corpus at 25 years
₹10K × 1888 → ₹1.89 Cr
- 5.
Terminal corpus at 30 years
₹10K × 3497 → ₹3.50 Cr
Conclusion
₹10,000/month at 12% nominal returns: ₹50 lakh in 15 yrs, ₹99 lakh in 20 yrs, ₹1.89 Cr in 25 yrs, ₹3.50 Cr in 30 yrs. Compounding accelerates non-linearly — the final 5 years of a 30-year SIP add as much as the first 20 years combined.
Tradeoffs
Assumes 12% nominal holds across 30 years. At 10% return: 15-year corpus ₹41L, 30-year corpus ₹2.28 Cr. At 14%: ₹61L and ₹5.50 Cr respectively. Starting 5 years later roughly halves the 30-year terminal corpus.