5,000 SIP Investment for 10 Years: How Much Will It Grow?
Taaza News | Published on May 23 2025
Investing regularly is one of the best ways to build wealth over time. One of the most popular and simple ways to do this in India is through a Systematic Investment Plan (SIP). A SIP allows you to invest a fixed amount of money every month in a mutual fund.
In this article, we’ll explore how much wealth you can create by investing ₹5,000 every month for 10 years through a SIP. We’ll also look at estimated returns at different interest rates.
What is a SIP?
A Systematic Investment Plan (SIP) is a simple way to invest in mutual funds. You invest a small fixed amount regularly (monthly), which helps you build the habit of saving and reduces investment risk.
Investment Details
- Monthly Investment: ₹5,000
- Investment Duration: 10 years (120 months)
- Total Investment: ₹6,00,000
Estimated Returns Over 10 Years
| Annual Return | Estimated Final Amount |
|---|---|
| 8% | ₹7.74 lakhs |
| 10% | ₹8.54 lakhs |
| 12% | ₹9.49 lakhs |
| 14% | ₹10.63 lakhs |
| 15% | ₹11.27 lakhs |
How Much Profit Will You Make?
For example, if you earn a 12% return annually, your total investment of ₹6,00,000 could grow to around ₹9.49 lakhs. That means a profit of nearly ₹3.49 lakhs, thanks to the power of compounding.
Benefits of SIP Investment
- Easy to start: Begin with as little as ₹500 per month.
- Reduces risk: Spreads your investment over time through rupee cost averaging.
- Power of compounding: Grow your wealth over time as returns earn returns.
- Disciplined savings: Builds a habit of regular investing.
- Flexible: Increase, reduce, or stop your SIP anytime.
Things to Keep in Mind
- Choose a mutual fund that fits your goals and risk level.
- Stay invested for the long term to see better returns.
- Review your SIP performance yearly and make adjustments if needed.
Conclusion
Investing ₹5,000 monthly through a SIP for 10 years is a smart and simple way to build long-term wealth. Depending on the returns, your ₹6 lakh investment can grow to over ₹9 lakh or more. Start early, stay consistent, and be patient.
If you're ready to start your SIP journey, consult a financial advisor or use a trusted online investment platform to pick the best mutual funds for your goals.