Best Way to Invest 20,000 Rupees

Saving is a primary goal, especially for a middle-class individual. Moreover, people generally save money from their income and plan to invest to earn good returns. For example, an employee earning INR 80K to INR 1 lakh generally saves around INR 20000 per month from their income. However, when the individual tries to invest, he encounters several questions, such as where to invest 20,000 rupees per month?

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Where can I invest 20,000 rupees? Nevertheless, various gateways have opened for investors to invest their savings in different modes of plans. 

Let us discuss the best way to invest 20,000 per month for 10 years.

Invest 20000 per Month for 10 Years in SIP

A Systematic Investment Plan (SIP) is one of the most preferable routes to invest 20000 per month for 10 years or more. The investment of INR 20000 means different for everyone. It varies from person to person. For example, an individual earning INR 50,000 per month will rarely be able to invest 20000 per month for 10 years, as 20,000 is equivalent to 40 percent of his monthly salary. However, a person earning two lakh per month can easily invest 20,000 per month for 10 years since 20,000 only matters to 10 percent of his salary. Hence, the investors are likely to invest 20,000 per month for 10 years if the investment plan is less risky and provides good returns over investment.

SIP is a well-proven option for small investors who generally ruminate or ask themselves where to invest 20,000 per month in order to earn good returns. Many people have greatly benefitted by investing in SIPs. It is considered the best option to enter the Mutual Funds market. Investors who can save INR 20,000 per month must consider SIP to invest to earn a reasonable return before retirement. However, 10 years is a long-term plan, so the investor must be consistent with his commitment to invest 20,000 per month for 10 years.

Nonetheless, it is at the discretion of investors to opt for the frequency of the SIP plan. The frequency of SIP plans varies from scheme to scheme. For example, it could be on a monthly, quarterly, or on annual basis.

People Also Read: SIP Calculator

Value of INR 20,000 per Month in SIP

For the past few years, the overall returns of mutual fund SIPs have remained under the range of 12% to 18%. Yet, if one assumes the average SIP range as 12% per annum and sees the result, he will get the following findings:

  • If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh. However, the returns of INR 5 lakh will turn into INR 17 lakh.

  • If an investor invests 20,000 per month for 10 years at the interest rate of 12%, he will be able to generate INR 47 lakh, i.e., more than double the amount he earned in the first five years.

  • In addition, the earnings in 15 years will double the income that an investor had generated in the first 10 years. The investor may generate INR 1 crore in 15 years by investing INR 20,000 per month. 

  • On top of that, an investor can generate INR 1.9 crore if he invests INR 20,000 per month for 20 years. 

  • If an investor consistently invests INR 20,000 per month for the next 25 years, he may generate INR 3.5 crore at an average interest rate of 12%.

  • Furthermore, if an investor coherently invests INR 20,000 for 30 years, the income of the individual will be not less than INR 6.4 crore at an interest rate of 12%.

Upon the investment and year mentioned above, one can conclude that the investor, who invested 20000 per month for 10 years, generates an income of INR 47 lakh. Therefore, it means he invested INR 24 lakh in the first ten years and earned around INR 48 lakh, twice the amount of the original investment in 10 years.

Note: The aforementioned earnings have been calculated based on the average annual interest provided by SIP plans. The earnings from 5 to 30 years could be more than the amounts shown above.

SIP in the mutual fund provides good annual interest on the investment. Hence, investors must consider investing their savings in SIPs and should invest 20,000 per month for 10 years (minimum) in order to meet the financial requirement of retirement. 


Investment is an incredible habit. Therefore, people should start investing early in their life to gather a significant fund for their retirement. For example, suppose a person invests 20,000 per month for 10 years in SIP and generates INR 48 lakh. In that case, the investor who started investing at 30 and consistently invested for the next 30 years (till retirement) is likely to generate more than INR 5 crores, as shown above. Hence, the investor should invest with the purpose of accumulating a respectable amount of money to enjoy their retirement. Further, the investor needs to be consistent to continue with the long-term investment plans if he wishes to invest 20000 per month for 10 years or more.


  • Is it possible to build a corpus by investing 20000 per month for 10 years?

    An investor may generate at least 48 lakhs by investing 20,000 per month for 10 years. If one sees and analyses the returns on investment under SIP schemes, one may examine how they can build a corpus by investing 20,000 per month for 10 years under SIP schemes.
  • Where can I invest 20,000 rupees?

    An investor may choose SIP schemes to invest 20,000 rupees. SIPs are the best policies of mutual funds, which require regular investment and grant significant returns on the investments. Hence, an investor can generate a significant return by investing 20,000 per month for 10 years or more.

Past 5 Year annualised returns as on 01-04-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

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