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SIP for Beginners: How Small Investors Can Build Crores Without Lump Sum

SIP Investment

Vikram Singh

February 21, 2026 at 10:04 AM IST · 3 min read

SIP for Beginners: If you start saving just ₹5,000 per month at the right time, with the power of compounding and a little patience, you can build a corpus worth crores by retirement. This formula is a panacea for those who want to start small and leave a substantial wealth for their future generations. In this article, we will decode a unique strategy that requires you to invest for only 15 years and watch the market play out for the next 15 years.

Understand the Unique 15-15 Formula

SIP Investment

Investment strategy is simple yet effective. Under this strategy, you need to make an SIP of ₹5,000 every month for 15 consecutive years. Your total investment during this period will be just ₹9 lakh. The real game begins when you stop investing after 15 years, but don’t withdraw your accumulated funds. You leave that amount in the market for another 15 years. This way, your money compounds over a total of 30 years, eventually turning into a huge wealth corpus.

How does a 12% to 14% return change your fortune

Average returns from mutual funds can change the picture of your future finances. Let’s see how your monthly investment of ₹5,000 can become a mountain after 30 years at different return rates.

The Magic of 12% Annual Returns

If your investment grows at an average rate of 12%, your corpus will grow to around ₹14.8 lakh in the first 15 years. If you keep this money invested for the next 15 years, the fund will cross the magical figure of approximately ₹1.30 crore by the end of the 30th year. This means that an investment of ₹9 lakh will make you a millionaire.

The Incredible Power of 13% and 14% Returns

If the market performs slightly better and you earn a 13% return, this same fund could reach ₹25.93 lakh in 15 years and ₹1.62 crore after 30 years. At an annual return of 14%, your balance after 15 years will be ₹28.26 lakh, which will grow to approximately ₹2.02 crore over the next 15 years. This additional 1% or 2% difference can add up to crores in the long run.

SIP Investment

What is SIP, and why is it a boon for small investors

A Systematic Investment Plan (SIP) is a disciplined investment method where you invest a fixed amount every month into a mutual fund. This reduces the risk of market volatility by earning more units when the market is down and fewer when it’s up. This is called “rupee cost averaging.” SIPs are the safest route for small investors because they don’t require a large lump sum and allow you to continue investing at your convenience.

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