SIP Calculation: Currently, the Indian stock market is witnessing a significant downturn. Foreign investors are withdrawing their capital, and those invested in mutual funds are also pulling their money out. Consequently, many new investors who were considering entering the stock market are feeling anxious.

If you are a new investor planning to enter the stock market, it is advisable to invest through a Systematic Investment Plan (SIP) in mutual funds rather than investing directly in stocks. Investing a lump sum directly into the stock market carries a higher risk of capital loss. Conversely, investing smaller amounts regularly through an SIP in a mutual fund can potentially be more beneficial.

However, before investing in any mutual fund, you should consult with a financial advisor and ensure that your choice of fund is backed by thorough research. Suppose you select a fund and decide to start an SIP of ₹9,999 per month—beginning this Diwali—and want to know how many years it would take for your investment to grow to ₹1 crore. Let’s look at the calculations to determine how long it would take to become a 'crorepati' (millionaire) by investing ₹9,999 per month.

How many years will it take to become a 'crorepati' by investing ₹9,999 per month?

If you start an SIP of ₹9,999 per month this Diwali, how many years will it take to reach a corpus of ₹1 crore? To calculate this, we used the calculator available on the 'Mutual Fund Sahi' (mutualfundsahi.com) website.

Typically, an SIP can yield a return of around 12%. Based on this, if an individual invests ₹9,999 per month, it would take approximately 20 years to accumulate a fund of ₹1 crore. Over 20 years, the total corpus would reach ₹99.90 lakh. By the 21st year, this amount would grow to ₹1.14 crore. Over 20 years, your total investment will amount to ₹24 lakh, and over 21 years, it will be ₹25 lakh 20 thousand. Assuming a 12% return on your investment, you would receive ₹99.90 lakh after 20 years, and ₹1 crore 14 lakh after 21 years.

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