SIP of Rs. 1 Lakh Per Month

If you invest Rs. 1,00,000 per month through a SIP for 5 years at an assumed annual return of 15%, the total future value of your investment would be approximately Rs. 89,68,169. ​​
INVEST NOW
Invest Rs. 1 lakh in SIP
INVEST NOW
3 min
14-Feburary-2025

Systematic Investment Plans (SIPs) have become one of the most popular ways investors use to invest in mutual funds. SIPs allow investors to invest a predetermined amount at a predetermined interval regularly in the choice of their mutual fund schemes. As the SIP amount is automatically debited every month from the investors’ bank accounts, the investors do not have to spend time and effort saving a specific amount every month and finding potential investments to invest in.

Because of their compounding feature, SIPs create financial discipline and may provide higher-than-normal returns. However, it is a common dilemma among mutual fund investors regarding the ideal amount to invest regularly in SIPs.

Although the amount you invest regularly in SIPs depends on various factors such as financial situation, risk appetite, and financial goals, it is a common principle that the higher the SIP amount, the higher the potential returns. This article will help you understand the return potential of Rs. 1 lakh SIP per month if you can invest Rs. 1 lakh in SIP.

Can I invest Rs. 1 lakh per month in SIP?

Investing in SIPs is similar to buying a monthly subscription to your favourite OTT platform. You can visit the mutual fund house's website and fill out a SIP form, which contains details such as the SIP amount (Rs. 1 lakh here), SIP frequency (monthly, quarterly, semi-annually, or annually), and details about the mutual fund scheme. Mutual fund houses provide investors with the flexibility to choose any SIP amount they want to invest. If you want an Rs. 1 lakh SIP, you just have to fill out the amount in the SIP form, and the mutual fund house will deduct Rs. 1 lakh every month from your bank account.

Once you have set the SIP amount to Rs. 1 lakh, the mutual fund house will use the monthly amount of Rs. 1 lakh to buy mutual fund units. The mutual fund units you hold will rise or fall in value as per the performance of the securities included in the mutual fund scheme. Most SIPs have provided hefty returns to investors, with the return rate going over 15% or 18% in some mutual fund schemes. On average, mutual fund schemes have provided 10%-12% returns to the investors, which is at par or even higher than other investment instruments. However, it is important that you do extensive research on the mutual fund scheme before you do Rs. 1 lakh SIP per month.

Pro tip

DIVERSIFY your investments | MAXIMISE returns | MINIMISE effort
Discover over 1,000+ Mutual Fund schemes with ease. 
Exclusive the Bajaj Finserv Mutual Funds platform.

MF Pro Tip banner

Value of Rs. 1 lakh per month SIP

Here is a detailed example to help you understand how much your SIP of Rs. 1 lakh per month will be worth after 5, 10, 15, and 20 years:

If you invest Rs. 1 lakh monthly in a SIP with an annual return rate of 12%, the investment can grow substantially over different time horizons.

Rs. 1 lakh SIP per month for 5 years - Know future value

Total contribution: Rs. 1,00,000 x 60 months = Rs. 60,00,000

Estimated value after 5 years: Rs. 82,48,637

Rs. 1 lakh SIP per month for 10 years - Know future value

Total contribution: Rs. 1,00,000 x 120 months = Rs. 1,20,00,000

Estimated value after 10 years: Rs. 2,32,33,908

Rs. 1 lakh SIP per month for 15 years - Know future value

Total contribution: Rs. 1,00,000 x 180 months = Rs. 1,80,00,000

Estimated value after 15 years: Rs. 5,04,57,600

Rs. 1 lakh SIP per month for 20 years - Know future value

Total contribution: Rs. 1,00,000 x 240 months = Rs. 2,40,00,000

Estimated value after 20 years: Rs. 9,99,14,792

Rs. 1 lakh SIP per month for 30 years - Know future value

Total contribution: Rs. 1,00,000 x 360 months = Rs. 3,60,00,000

Estimated value after 30 years: Rs. 35,29,91,377

Curious about how much your mutual fund investments can grow over time? Discover potential returns with our SIP return calculator and Lumpsum calculator. Estimate the future value of your investment now!

Real example - SIP of Rs. 1 lakh in good mutual funds

Here is a real-life example for a SIP of Rs. 1 lakh per month:

Let’s consider that you started a SIP of Rs. 1 lakh per month in a well-performing mutual fund such as the XYZ Equity Fund. What would happen if the investment is held for 5, 10, 15, 20, and 30 years with annual return rates of 12%, 15%, and 18%? Here is a real example with the final investment amount:

5-year SIP calculation

Total contribution: Rs. 60,00,000
The final amount for a mutual fund with 12% returns: Rs. 82,48,637

The final amount for a mutual fund with 15% returns: Rs. 89,68,169

The final amount for a mutual fund with 18% returns: Rs. 97,65,787

10-year SIP calculation

Total contribution: Rs. 1,20,00,000

The final amount for a mutual fund with 12% returns: Rs. 2,32,33,908

The final amount for a mutual fund with 15% returns: Rs. 2,78,65,727

The final amount for a mutual fund with 18% returns: Rs. 3,36,25,751

15-year SIP calculation

Total contribution: Rs. 1,80,00,000

The final amount for a mutual fund with 12% returns: Rs. 5,48,00,000

The final amount for a mutual fund with 15% returns: Rs. 7,17,11,000

The final amount for a mutual fund with 18% returns: Rs. 9,30,08,000

20-year SIP calculation

Total contribution: Rs. 2,40,00,000

The final amount for a mutual fund with 12% returns: Rs. 9,99,14,792

The final amount for a mutual fund with 15% returns: Rs. 15,15,95,497

The final amount for a mutual fund with 18% returns: Rs. 23,43,48,719

30-year SIP calculation

Total contribution: Rs. 3,60,00,000

The final amount for a mutual fund with 12% returns: Rs. 35,29,91,377

The final amount for a mutual fund with 15% returns: Rs. 70,09,82,061

The final amount for a mutual fund with 18% returns: Rs. 1,43,25,28,917

Model SIP mutual funds portfolio

It is always good to create a balanced portfolio with well-diversified mutual fund investment through SIPs. However, most mutual fund portfolios are created based on the financial situation, SIP amount, risk appetite, investment goals, and the potential holding period of the investors.

Depending on these factors, here are some possible combinations of asset allocation to invest 1 lakh in SIP:

Combination 1: Rs. 30,000 in a large-cap fund, Rs. 20,000 in a balanced fund, Rs. 20,000 in a small and mid-cap fund, Rs. 20,000 in an index fund, and Rs. 10,000 in a flexi/multi-cap fund.

Combination 2: Rs. 40,000 in two large-cap funds (Rs. 20,000 each), Rs. 20,000 in a balanced fund, Rs. 20,000 in a small and mid-cap fund, and Rs. 20,000 in an index fund.

Combination 3: Rs. 30,000 in a balanced fund, Rs. 30,000 in two large-cap funds (Rs. 15,000 each), Rs. 20,000 in a small and mid-cap fund, and Rs. 20,000 in an index fund.

Combination 4: Rs. 50,000 in an index fund, Rs. 30,000 in a balanced fund, and Rs. 20,000 in two small and mid-cap funds (Rs. 10,000 each).

Combination 5: Rs. 30,000 in a large-cap fund, Rs. 20,000 in two small and mid-cap funds (Rs. 10,000 each), Rs. 30,000 in a balanced fund, and Rs. 20,000 in a flexi/multi-cap fund.

Conclusion

SIP investments can prove to be highly beneficial for consistent investors who invest regularly over a long period. If you are looking to invest a significant amount, such as Rs. 1 lakh, you can realise hefty returns, depending on the annual return rate of specific mutual fund schemes. You can create a diversified portfolio and allocate Rs. 1 lakh in different mutual fund schemes carrying different risks and return potential. However, it is important that you choose mutual fund schemes after extensive research and after analysing the historical performance of every scheme.

Essential tools for all mutual fund investors

Mutual Fund Calculator

Step Up SIP Calculator

Axis Bank SIP Calculator

Canara Robeco SIP Calculator

SBI SIP Calculator

HDFC SIP Calculator

Nippon India SIP Calculator

ABSL SIP Calculator
ICICI SIP Calculator Invesco SIP Calculator Motilal Oswal Mutual Fund SIP Calculator Kotak Bank SIP Calculator

Frequently asked questions

How much is Rs. 1 lakh per month in SIP?
Investing Rs. 1 lakh per month in SIP can lead to significant wealth accumulation over time, depending on the rate of returns. At 12% annual return, it could grow to approximately Rs. 4.56 crore over 20 years. With a 15% return, the corpus might reach around Rs. 7.58 crore, while an 18% return could potentially grow it to about Rs. 12.44 crore.

How much can Rs. 50,000 monthly SIP make after 5 years?
Investing Rs. 50,000 per month in SIP over 5 years amounts to a total investment of Rs. 30 lakh (Rs. 50,000 x 12 months x 5 years). The final value of the investment depends on the rate of return of the mutual fund scheme. If the average annual return is 12%, the approximate future value after 5 years would be around Rs. 39.15 lakh.

Is SIP better than FD?
SIPs are considered better than FDs as SIPs can provide higher returns depending on the performance of securities included in the mutual fund schemes.

What is the SIP of Rs. 20,000 for 10 years?
Investing Rs. 20,000 per month in SIP over 10 years amounts to a total investment of Rs. 24 lakh (Rs. 20,000 x 12 months x 10 years). The final value of the investment depends on the rate of return of the mutual fund scheme. Assuming an average annual return of 12%, the approximate future value after 10 years would be around Rs. 46.40 lakh.

Is monthly SIP safe?
Yes, a monthly SIP is a relatively safe investment and can provide good returns to the investors in the long-term.

Can I withdraw the SIP amount anytime?
Yes, you can withdraw your SIP entirely or partially at any time as per the policies of the mutual fund house. However, the fund house may levy some charges or penalties if you withdraw it before a certain period or before investing in a certain amount.

Are SIP returns guaranteed?
Investments in mutual funds are subject to market risk, and returns from SIPs are not guaranteed. Hence, it is important you do due diligence before choosing mutual fund schemes for SIP.

Is SIP better than PPF?
Mutual fund investments and PPF investments depend on investors' risk appetite. While mutual fund investments might be risky, PPFs offer lower risk. However, the return potential of SIPs is generally higher than that of PPFs.

What is the 8-4-3 rule in SIP?
The 8-4-3 rule is a compounding rule that suggests that investment in a SIP doubles after 8 years at an annual rate of 12%. It doubles again after 4 years and again after 3 years.

Can I start SIP immediately?
Yes, you can start SIP immediately by visiting the mutual fund house website and filling out a SIP form.

How much can Rs. 1 Lakh SIP grow in 20 years?

The growth of a Rs. 1 Lakh monthly SIP over 20 years depends on the average annual returns. For example, with an annual return of 12%, your investment could grow to nearly Rs. 9.9 crores. However, the actual corpus will vary based on fund performance and market conditions.

Which funds are best for a Rs. 1 Lakh SIP?

The ideal funds for a Rs. 1 Lakh SIP depend on your financial goals and risk tolerance. Equity mutual funds, including large-cap, flexi-cap, or index funds, are suitable for long-term investments. Consult a financial advisor to choose funds that align with your objectives and risk profile.

Is Rs. 1 Lakh SIP suitable for retirement planning?

Yes, a Rs. 1 Lakh SIP is an excellent choice for retirement planning. Over 20 years, it leverages the power of compounding to build a significant corpus, ensuring financial independence and security during your retirement years.

What are the tax implications of investing Rs. 1 Lakh SIP monthly?

Equity mutual fund SIPs are subject to a 10% Long-Term Capital Gains (LTCG) tax on profits exceeding Rs. 1 lakh per year. Debt funds have separate tax rules depending on the holding period, while ELSS funds provide tax deductions under Section 80C, offering dual benefits of investment and tax savings.

Can I modify my Rs. 1 Lakh SIP amount?

Yes, SIPs offer flexibility to adjust amounts. You can increase your SIP through a top-up option or reduce it based on your financial needs. Most mutual fund platforms enable you to modify SIP contributions conveniently.

Is Rs. 1 Lakh SIP risk-free?

No, SIPs are not completely risk-free as they are influenced by market fluctuations. However, long-term investments benefit from rupee cost averaging, which mitigates volatility and can provide relatively stable returns over times.

What happens if I miss a Rs. 1 Lakh SIP installment?

Missing a SIP installment does not incur penalties but can reduce your overall investment corpus. To ensure consistency and meet your financial targets, maintain sufficient funds in your account for uninterrupted SIP contributions.

Related videos

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer:


Bajaj Finance Limited (“BFL”) is an NBFC offering loans, deposits and third-party wealth management products.

The information contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. 

This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.

Disclaimer:

Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319

BFL does NOT:

(i) provide investment advisory services in any manner or form:

(ii) carry customized/personalized suitability assessment:

(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.

In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.

Investment by a person residing outside the territorial jurisdiction of India is not acceptable nor permitted.

Disclaimer on Risk-O-Meter:

Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.