Can a Rs 10,000 mutual fund SIP help you build Rs 1 crore? Check the timeline

Are you planning to invest Rs 10,000 to build Rs 1 crore target corpus? Here is how much time you will take to reach target corpus, according to the Wealth Conversations Report by FundsIndia.

Investors should first assess how much they can invest each month, whether they can increase their SIP through a step-up approach, and the corpus they aim to build. These factors can help them estimate how long it may take to reach their financial goal and determine whether their existing investment plan is adequate to achieve the target.

One should always know how much amount they can invest monthly through mutual fund SIPs. Say if you can invest Rs 10,000 monthly to build your target corpus.

The next thing one should know is if they can increase their monthly SIP amount annually or will continue with the same amount. In other words, one should decide if they want to do a step-up SIP or not.

Assuming that your investments will grow at a rate of return of 12% per annum. It refers to the investment rate that one will anticipate from their investments.

According to the report, it will take around 20 years and one month to reach the target corpus with a monthly SIP of Rs 10,000 and no annual increase in SIP.

If one can go with 5% annual increase in their SIP, then they can achieve this amount in 17 years and 10 months.

If one can go with 10% annual increase in their SIP, then they can achieve this amount in 15 years and 10 months.