For Rs 10,000 monthly in SIP, here's how long it'll take you gather 1 crore

For investors looking to create a huge fund, there is an option of investing in mutual funds through SIP. SIP is one such way through which a habit of regular investment is formed. Despite the volatility of the market, if the SIP is maintained for the long term, there is a tremendous benefit of compounding in it.

Generally, there are several schemes in mutual funds, which have given annual returns of 12 to 15 percent to the investors in the long term. If you are ready to do a SIP of Rs 10,000 every month then at 12 per cent and 15 per cent annualized returns, here's how long it will take to build a corpus of more than Rs 1 crore.

If you do a monthly SIP of Rs 10,000 and the annual return of the scheme is 12%, then you will create a corpus of about Rs 1 crore (99,91,479) in 20 years. In this, your investment in the entire tenure will be Rs 24 lakh and the wealth gain will be around Rs 76 lakh.

If you do a monthly SIP of Rs 10,000 and the annual return of the scheme is 15%, then you will create a corpus of Rs 1 crore (1,10,42,553) in 20 years. In this, your investment in the entire tenure will be Rs 21.6 lakh and the wealth gain will be around Rs 88.8 lakh.

However, you should note that investing in mutual funds carries risk. Market volatility affects the performance of the fund. AK Nigam, Director, BPN Fincap, says that an investor should make an investment decision after looking at his income, target and risk profile. The good thing with SIP is that you can start investing with small savings too. Nowadays, there is an option of Rs 100 monthly SIP in many schemes. He says that SIP is a systematic way of investment. There are many such funds in the long term, which have annual SIP returns of 12 per cent or more.