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New Delhi: Systematic Investment Plan, or SIP, is becoming the investment instrument of choice for the average middle-class Indian. According to data released by AMFI (Association for Mutual Funds in India), the mutual fund industry saw a growth in SIPs in April 2025, when a total of 59.1 lakh new SIPs were registered. Aided by the continuous tailwind, SIP AUM (assets under management) has reached Rs 14,61,360 lakh crore, or more than Rs 14.6 lakh crore.
According to monthly contribution too, the inflow through SIP in May 2025 reached an all-time high of Rs 26,688 crore—a marginal rise from Rs 26,632 crore recorded in April 2025. The increasing tide of investments for years through SIP indicates that something must be right about this mode of investment. Let’s see how SIPs can make you a crorepati starting from scratch.
Assume a 25-year-old begins earning and opens an SIP from the first month. If he/she is diligent enough to invest Rs 30000 per month in a mutual fund that gives them a rate of interest of more than 12 percent and continues raising the investment amount every year by 10%, then the total value generated by the SIP in the time period of 10 years is expected to stand at Rs 10,122,979 (Rs 1.01 crore). Equity-linked mutual fund schemes generally fetch returns at the above-mentioned rate. The SIP calculator tells us that with this planning the possibility to become a crorepati in the 10th year is real. This means even if an individual does not make any other investments, the SIP alone could make him/her a crorepati.
It may be noted that the interest rates in Mutual Funds are estimated figures and there is no guaranteed return as the investments are linked to market. Please consult investment or market experts before investing in Mutual Fund lumpsum or SIP modes.
(Disclaimer: This article is only meant to provide information. TV9 Network does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
