What sip sizes are needed for different retirement goals?

By Anshul IST (Released)


Looking to get Rs 1 crore as Systematic Investment Plan (SIP) return? Even though, achieving this goal may seem unattainable, it is indeed possible with systematic planning and execution, experts say.

The Systematic Investment Plan (SIP) is a way to invest a fixed amount at regular intervals in a mutual fund. With SIPs, you can buy shares of a mutual fund for the specified amount on a specific date each month.

Long-term monthly investments in SIPs can do the trick with the power of compounding and can help generate good returns.

For people looking to build a retirement corpus, SIPs can be an effective tool, experts say.

However, you have to have a taste for risk and start planning early.

“The good thing about planning early is that you can achieve any long-term goal with little sacrifice or effort,” said Vijay Singhania, President of TradeSmart in a conversation with

For retirement, each person will have a different amount they need. For ease of understanding, let’s take the figure of crorepati. How much will it take to have Rs 1 crore at retirement?

The amount needed to invest here will depend on two things – when you start investing and what instrument you are investing in, Singhania said. CNBC-TV18.

“Again, if we assume that a 25-year-old decides to plan for retirement and invests in an equity-linked SIP, which at a conservative rate yields 12% per annum, then the calculations of “Compound interest shows that the youngster would need to save only Rs 2,000 per month for the next 35 years. The investment would result in a final pension amount of Rs 1.05 crore,” he added.

According to Groww’s calculator, someone investing 2,000 rupees for 20 years will be able to generate 19,98,296 rupees, given the conservative rate of 12%.

Now, if an investor parks Rs 5,000 per month, he can earn Rs 1.07 crore in 26 years (with the same interest rate).

Here are the 3-year and 5-year returns of some mutual funds

Fund name

Crisis rating


3-year returns

Returns over 5 years

SBI Contra Fund – Direct Plan – GrowthContra Fund





Aditya Birla Sun Life Tax Plan – Direct Plan – GrowthELSS





Bank of India Tax Advantage Fund – Direct Scheme – GrowthELSS





HDFC Tax Savings Fund – Direct Scheme – GrowthELSS





IDFC Tax Advantage Fund (ELSS) – Direct Scheme – GrowthELSS





According to calculations provided by Scripbox, by starting a SIP of Rs 7,000 per month, it is possible to get more than Rs 1 crore in maturity value in 20 years of savings (given that the rate of return is 10% for the mutual fund).

However, this does not mean that the corpus will not fluctuate. The time horizon ensures that despite losses and gains canceling each other out, the rate of return remains constant, said Scripbox co-founder Prateek Mehta.

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