How a Rs 50,000 monthly SIP for 20 years can grow to Rs 5 crore: Vijay Kedia explains

Ace investor Vijay Kedia shared on social media that investing Rs 50,000 monthly through SIPs over 20 years at a 12% CAGR can potentially grow to around Rs 5 crore.

He added that it's the power of discipline and the magic of compounding that enable the creation of a substantial corpus over time.

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In a post on X, Kedia wrote, “Invest Rs 50,000 per month in an SIP for 20 years at 12% CAGR, and it can grow to approximately Rs 5 crore. ( Power of discipline. Magic of compounding.)”


The ace investor shared his previous post, which mentioned that, “Your salary of lakhs doesn't make you a millionaire, your savings of lakhs makes you a millionaire.” He further urged individuals to rethink how they manage money and avoid consumer-driven habits.

He criticised the Western philosophy of "live for today," calling it a myth theory of consumerism. “There is a theory in America that live for today, tomorrow never comes. This is an abhorrent theory,” he said, pointing out how such thinking leads to financial insecurity.

According to Kedia, nearly 40% of Americans don’t have even $1,000 to meet emergencies, largely because saving is not ingrained in their culture.

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While countries like the US offer social security as a safety net, Kedia argued that relying on governments is no substitute for personal financial planning. Instead, he advocated for building wealth through consistent investments.

He advised young earners to reduce discretionary spending — on parties, fashion, and brands — and redirect that money into savings. “The first thing to do is reduce parties, spend less on fashion and brands, and save as much money as possible,” he said.

In the end, Kedia added: “Either you can have a lavish young age or you can have a lavish old age. Always keep this in mind.”

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