Can a Rs 20,000 SIP make you a crorepati? CA breaks down the financial formula

For many young professionals, becoming a crorepati feels tied to huge salaries, lucky stock picks, or launching a successful startup. But according to CA Nitin Kaushik, long-term wealth creation may be far less dramatic and far more disciplined than people imagine. In a recent social media post, he explained how an ordinary monthly SIP of Rs 20,000, backed by consistency and patience, could potentially grow into a corpus worth over Rs 2 crore. His breakdown quickly caught attention online for making wealth-building look achievable instead of intimidating.

CA Nitin Kaushik shared that building a sizeable investment portfolio does not necessarily require an extraordinary income. Instead, he highlighted the power of systematic investing, gradual increases in contributions, and staying invested across market cycles.

SIP of Rs 20,000

According to his calculation, a monthly SIP of Rs 20,000 invested in a diversified portfolio can potentially grow into around Rs 2.1 crore over 22 years. The portfolio allocation he mentioned included roughly 35 per cent in mid-cap funds, 30 per cent in large-cap funds, while the remaining portion was spread across flexi-cap funds and gold investments.



But the key factor, he explained, was not just the starting SIP amount. It was the yearly increase.

Annual increase

Kaushik pointed out that if an investor increases their SIP contribution by just 7 per cent every year as income rises, the compounding effect becomes significantly stronger over time. Combined with an assumed annual return of 12 per cent CAGR, even a modest monthly investment can snowball into a substantial long-term corpus.


His message focused heavily on consistency over excitement. In an age where many investors constantly chase trending stocks, switch strategies during market volatility, or panic during corrections, Kaushik stressed that wealth creation usually rewards patience more than prediction. According to him, long-term investing works best when people resist the urge to react emotionally to every market movement.

Diversification

He also highlighted the importance of diversification. Instead of relying entirely on one category of investments, the suggested mix spreads money across large caps, mid caps, flexi caps, and gold, helping investors navigate different economic and market conditions more steadily.


The broader lesson from his post was simple but powerful: building wealth is rarely about one massive financial breakthrough. More often, it is the result of disciplined habits repeated over decades.

For salaried professionals and middle-class investors, the calculation offered a reassuring reminder that financial growth does not always begin with huge money. Sometimes, it begins with one SIP, one yearly increase, and the patience to stay invested long enough for compounding to do its work.