Investment is a long journey, where the end goal is akin to a distant mountain. When you start investing, you may feel an overwhelming sense of futility, but instead of running from it, you must embrace it. We can understand the urgency in the current economic climate, but we assure you that being patient pays off quite well. For instance, you see a lot of people wanting to earn a crore fast without understanding the fundamental truth about earning one crore. If you are patient enough with the first crore, the next one comes easier. In the SIP period, about ten to twenty years, the second half is always greater than the first. Today, we will demonstrate this point by showing you – how a ₹1 Lakh Monthly SIP returns into ₹5 Crore with Consistent 12 Percent Returns.
Patience is the Highest Virtue
This was said in the 14th century poem Piers Plowman by William Langland. It means that patience can be as resolute as a moral virtue, with strong emphasis on self control. In mutual fund investing, this means staying disciplined and consistent with your SIPs; understanding that long term growth requires time and self control rather than expecting quick gains.
The money you invest is not like a creeper that grows everywhere with little effort; it is more like a fruit tree that bears rewards only when it matures over time. When you invest a fixed amount every month, your money does not simply generate profit; it acts like fertilizer, enhancing your long term investment by taking advantage of market cycles and the power of compounding.
Example: Meera’s SIP Growth
For instance, Meera invests ₹12,000 every month at an annual return of 10 percent. Her investment grows to around ₹7.5 lakh in 5 years, ₹20 lakh in 10 years, and nearly ₹75 lakh in 20 years. This is a snowball effect where wealth grows more and more as investments continue.
How a ₹1 Lakh per Month SIP Can Grow to ₹5 Crore with 12 Percent Returns
Vikram started a SIP of ₹1 lakh per month with an annualized return of 12 percent. After 5 years, his investment could grow to around ₹82.8 lakh. Over this period, he would have invested a total of ₹60 lakh, meaning the returns earned would be approximately ₹22.8 lakh.
Once you reach this stage, continuing the SIP makes hitting the next milestone easier. If he continues for another 5 years, making it 10 years overall, his corpus could grow to around ₹2.32 crore, showing the power of compounding over time. Extending the investment to 15 years, the same SIP could potentially grow to approximately ₹5.02 crore, proving how growth accelerates in later years and how patience is ultimately rewarded.
Here’s how his investment could grow:
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5 years → ₹82.8 lakh
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6 years → ₹1.05 crore
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10 years → ₹2.32 crore
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12 years → ₹3.19 crore
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14 years → ₹4.32 crore
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16 years → ₹5.75 crore
How a ₹1 Lakh Monthly SIP Can Grow to ₹5 Crore with 14 Percent Returns
If you invest ₹1 lakh every month in a SIP and it earns 14 percent instead of 12 percent, your journey to big wealth becomes faster and more exciting, but remember that patience is still the key. With a slightly higher return, your money reaches your goal sooner, and you can clearly see the charm of compounding. For example:
SIP Results (14 Percent Return)
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5 years → ₹85.3 lakh
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6 years → ₹1.13 crore
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10 years → ₹3.2 crore
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12 years → ₹4.96 crore
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14 years → ₹7.42 crore
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16 years → ₹11.0 crore
This growth shows that even a small increase in annual returns can make a huge difference over time. The first few years may feel slow, like a snail’s gait, but once you hit that first crore, the next milestones come faster. All you have to do is stay consistent and disciplined. Then your money does not just grow, it multiplies quickly, proving that patience rewards long term investors in a big way.
Conclusion
The key takeaway is simple: stay patient and stay invested. The first crore takes time, but once you hit it, reaching the next milestones becomes easier. Do not try to time the market or chase quick wins; they are risky and give the illusion of rewards. Embrace the truth that consistency and letting your money grow over time are what really work.
At the same time, make sure your money is working smart by spreading it across different types of investments. Picking the right mix, choosing good funds, and giving your investments time are just as important as the SIP itself. Be a disciplined investor who stays invested and let patience guide your financial decisions. Consider choosing the right mutual fund advisor to manage your wealth for you.
Source: TOI