Nowadays, everyone wants to invest in places where they can get maximum returns with a small investment. SIP is a very popular investment scheme these days. But the question arises that is it possible to build a large fund by investing just Rs. 1,000 every month?
With a SIP of Rs. 1,000, you can accumulate lakhs of rupees in the long run. But what is important is how much that money will be worth by the time it is done.
How Many Years You Need to Invest
If you invest ₹1,000 every month through SIP and earn a 12% annual return, you collect about ₹30 lakh in 30 years. If you continue the SIP for 40 years, the amount grows to around ₹1 crore at the same return rate. If the return rate is lower, your final amount also reduces.
Best 5 vs Worst 5 SIP Funds (3, 5, 10, 15 & 20 Years).
Even the worst-performing SIP mutual funds over 15–20 years have comfortably beaten FD & PPF returns. pic.twitter.com/0kOKnQ1fiJ
— Stocks World (@anandchokshi19) November 22, 2025
How Inflation Reduces Your Money
Inflation reduces the real value of your savings. At an average inflation rate of 6%, ₹1 crore becomes only ₹17.41 lakh in today’s value after 30 years. By 2055, something that costs ₹1 crore today may cost ₹6–7 crore. After 40 years, the value of ₹1 crore falls to about ₹9.7 lakh in today’s money. After 50 years, ₹1 crore drops to around ₹5.43 lakh.
So, even though a ₹1,000 SIP helps you collect crores, inflation makes it hard to become rich in real terms.