The Dark Reality of SIP 

 The Dark Reality of SIP 

Systematic Investment Plans, have been a rapidly growing sector for the past ten years. Every day, many people are starting SIPs due to the main reason that one can earn from one crore to ten crores with a monthly SIP of just 1,000 to 2,000 rupees.” 

The main for this is that many people are starting SIPs (Systematic Investment Plans) with the hope of quickly turning their money into a crore (10 million) rupees,    influenced by YouTube influencers claiming how much they can earn and easily entering investments through an SIP calculator while expecting 20% returns. 

“First, let us compare the returns of mutual funds, specifically large caps, mid caps, and small caps, over the past ten years to those of the previous decade.” best mutual funds for 2025When looking at the average returns over the last ten years, large cap and mid cap and small cap are around 14% to 21% per annum{money control mutual fund perfomance calculater}”When we compare with the last ten years’ returns, let us see how long we need to invest in an SIP to earn one crore rupees.” Let’s find out how many years it would take to earn a crore of rupees with an investment of just 1,000 rupees SIP

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 Therefore, if you invest 1000 Rs monthly in large cap mutual funds through SIP, your amount will be 262,000 Rs. Out of this, your investment will be 120,000 Rs and the returns will be 142,000 Rs.If one invests in a large-cap fund through a SIP for a period of 30 to 35 years, with an expected return of 14% per annum, there is a possibility of accumulating one crore rupees, provided the fund performs as anticipated. 
source; sip calculater

If we consider mid-cap investments, the average return over the past ten years has been 18% per annum. If we invest by consistently contributing ₹1000 every month as an SIP for 28 years, assuming the fund achieves this same average return of 18% per annum, we have the opportunity to accumulate a capital of one crore rupees. 

If you invest in small cap funds with a return of 21%, calculations indicate that if we invest 1,000 rupees monthly through SIP for about 25 years, we could accumulate around 10 million rupees. This is feasible only if the returns consistently remain at 21% for the entire 25 years. Conclusion:

best mutual fund for sip

If you wish to earn more money through an SIP (Systematic Investment Plan), your investment must be held for at least 15 years; only then will you be able to start the SIP and receive good returns. Additionally, if you increase your investment by 5% or 10% every year, you will have a better chance of reaching your goals. However, it is impossible for the SIPs you make in five or ten years to become worth a crore (10 million) rupees. Therefore, do not start SIPs out of excessive hope or greed. You should invest only by analyzing the risks in the market and following the advice of financial experts.