Investing in mutual funds through a Systematic Investment Plan (SIP) has become one of the most popular ways to build wealth in India. With just a small monthly investment, investors can benefit from compounding and market growth. A simple example shows that a ₹2000 monthly SIP, if invested consistently, has the potential to grow into ₹7.6 lakhs over time, depending on the chosen fund and returns.
How SIPs Help Build Wealth
SIP allows investors to put aside a fixed amount every month into a mutual fund scheme. This disciplined investment approach takes advantage of rupee-cost averaging and the power of compounding, helping even small contributions grow into a large corpus over the years.
Growth of ₹2000 SIP – Explained with Calculation
The growth of your investment depends on the duration and average annual return rate of the mutual fund. Assuming an average return of 12% per year, the following calculation shows how a ₹2000 monthly SIP can grow:
| Duration | Total Investment | Expected Corpus at 12% Return |
|---|---|---|
| 5 Years | ₹1,20,000 | ₹1,65,000 |
| 10 Years | ₹2,40,000 | ₹4,65,000 |
| 15 Years | ₹3,60,000 | ₹7,60,000 |
This clearly demonstrates that consistent investment and patience are key factors in wealth creation.
Best Types of Mutual Funds for SIPs
Not all mutual funds provide the same returns. The right choice depends on the investor’s financial goals, risk tolerance, and investment horizon. Some of the most recommended categories include:
- Equity Mutual Funds – Best suited for long-term wealth creation; higher returns but carry market risks.
- Balanced or Hybrid Funds – A mix of equity and debt, ideal for moderate risk takers.
- Index Funds – Track stock market indices like Nifty 50, offering stable long-term growth with lower costs.
- Debt Funds – Lower risk, but returns are generally less compared to equity funds; suitable for conservative investors.
Why Long-Term Investment Matters
The ₹7.6 lakh figure is not achieved overnight but through long-term discipline. Staying invested for at least 10–15 years allows investors to ride out short-term volatility and enjoy the compounding effect. Even small monthly amounts, if left untouched, can multiply into a significant corpus over time.
Final Thoughts
A ₹2000 SIP may sound like a small start, but with consistency and the right mutual fund choice, it can grow into ₹7.6 lakhs in 15 years. For beginners, this is an ideal way to enter the world of investments, as it requires low capital but delivers high long-term rewards. Consulting a financial advisor before selecting a scheme is always recommended to align investments with personal financial goals.