See real examples of how a ₹500 monthly SIP can grow over different time periods with compound returns
Many people underestimate the power of small, consistent investments. A ₹500 monthly SIP might seem insignificant, but when combined with the magic of compounding and time, it can create substantial wealth. Let's explore real scenarios and see how your money can grow.
*Historical average returns of equity mutual funds
| Time Period | Total Invested | Maturity Value* | Total Returns | Return Multiple |
|---|---|---|---|---|
| 5 Years | ₹30,000 | ₹40,729 | ₹10,729 | 1.36x |
| 10 Years | ₹60,000 | ₹1,16,170 | ₹56,170 | 1.94x |
| 15 Years | ₹90,000 | ₹2,50,227 | ₹1,60,227 | 2.78x |
| 20 Years | ₹1,20,000 | ₹4,99,574 | ₹3,79,574 | 4.16x |
| 25 Years | ₹1,50,000 | ₹9,47,909 | ₹7,97,909 | 6.32x |
| 30 Years | ₹1,80,000 | ₹17,64,492 | ₹15,84,492 | 9.80x |
*Assuming 12% annual returns. Past performance doesn't guarantee future results.
Priya starts a ₹500 monthly SIP when her daughter is born. By the time her daughter turns 18, the investment has grown significantly.
Rahul, age 25, starts investing ₹500 monthly to save for a home down payment. After 12 years, he has a substantial corpus.
Sunita, age 30, starts a ₹500 monthly SIP for retirement. By age 60, she has built a significant retirement corpus.
See how different annual return rates affect your ₹500 monthly SIP over 20 years:
| Annual Return | Total Invested | Maturity Value | Total Returns |
|---|---|---|---|
| 8% | ₹1,20,000 | ₹2,95,386 | ₹1,75,386 |
| 10% | ₹1,20,000 | ₹3,82,847 | ₹2,62,847 |
| 12% | ₹1,20,000 | ₹4,99,574 | ₹3,79,574 |
| 15% | ₹1,20,000 | ₹7,67,091 | ₹6,47,091 |
Here's why ₹500 today will be worth much less in the future, and how SIPs help you stay ahead:
*Assuming 3% annual inflation
Your money grows 9% faster than inflation!
A ₹500 monthly SIP might seem small, but it's a powerful wealth-building tool. The key is to start early, stay consistent, and let time and compounding work their magic. Remember, the best time to start was yesterday, the second-best time is today.