How to Become Rich with SIPs?
Becoming rich is a common goal of almost every investor and every earning individual who is in their nascent stage of investment. To achieve that goal, you need to modify your investment portfolio that can help you become rich and also meet your investment and long-term financial goals.
And, a common question that most of the investors ask from their investment advisors is that if SIPs in mutual funds can help them become rich or a Crorepati in long-term?
Well, it does boost wealth in long-term but it requires you to choose the right mode of investment and stay invested for long-term. To start a monthly SIP is one such step. You can enhance your investments annually to meet investment needs as your income grows.
Let’s understand this with a simple illustration:
Let’s say you start a monthly SIP of Rs. 5,000 in mutual funds. Your investment horizon is 20 years and looking at the historical returns you can expect 12% returns in the long run. So, going with a return of 12 percent on monthly 5000 Rupees SIP, the online SIP calculator suggests that one you can get Rs. 49.5 lakhs as a maturity amount. Here, your net investment is only Rs. 12 lakh and wealth gained is more than double.
Benefits of Starting a SIP in Mutual Funds
Below are some of the reasons to start your SIP in mutual funds if you want to become rich:
Simply and Easy Investment
Regular investment is essential for wealth creation. And SIP helps you regularize your investment. You can initiate ECS on your bank accounts and also give your bank a standing instruction to invest a certain amount every month automatically in SIP mutual funds. It is quite easy and simply to automate your investments, which otherwise most of us tend to miss amid our busy schedules.
Brings in Financial Discipline
The reason why SIPs help you become rich is that it requires you to invest periodically. There is no option but to set aside a fixed sum every month towards SIPs. Therefore, you become financially disciplined by choosing the SIP route.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| Axis Max Life |
28.6% |
21.1% |
|
| Tata AIA Life |
26.65% |
20.83% |
|
| Bajaj Allianz |
20.38% |
12.4% |
|
| HDFC Life |
21.72% |
14.49% |
|
| ICICI Prudential Life |
20.06% |
13% |
|
| Birla Sun Life |
22.25% |
14.42% |
|
| PNB MetLife |
20.99% |
16.04% |
|
| Canara HSBC Life |
16.71% |
9.95% |
|
| LIC India |
10.6% |
- |
|
| SBI Life |
16.87% |
11.68% |
|
Fund rating powered by
Last updated: Aug 2025
| |
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| QUANT |
23.92% |
31.48% |
|
| PARAG PARIKH |
20.69% |
26.41% |
|
| EDELWEISS |
22.34% |
24.29% |
|
| KOTAK |
24.64% |
25.01% |
|
| MIRAE ASSET |
19.74% |
24.32% |
|
| PGIM INDIA |
14.75% |
23.39% |
|
| DSP |
18.41% |
22.33% |
|
| CANARA ROBECO |
20.05% |
21.80% |
|
| SUNDARAM |
18.27% |
18.22% |
|
Last updated: August 2025
The Benefit of Starting Early and Small
The key to growing your wealth is to start early and make regular investments. With SIPs, the minimum amount required to start an investment can be as low as Rs 500 a month. Even first time investors can create wealth by investing a small amount month. And then increase the amount with an increase in income.
The Benefit of Rupee Cost Averaging
The equity markets have always been volatile. But SIPs in mutual funds avert the risk of market fluctuations. Because you invest a fixed amount every month in mutual funds, investors are able to buy more fund units when the market dips and fewer units when the markets is reviving, which reduces the average cost pre unit. The factor of volatility is reduced, which in turn increases the overall gains. Moreover, there is no need to time the market.
Power of Compounding
SIPs earn you money through the power of compounding. Investing a small amount of money for a longer duration can get you good returns. By investing a small amount at regular intervals you can build a large corpus and meet your long-term financial goals.
Here are some of the best SIP plans that you can consider investing in 2024:
|
Name of the fund
|
1 Year Returns (in%)
|
3-Year Returns (in %)
|
5- Year Returns (in%)
|
|
Mirae Asset Emerging Bluechip Fund
|
18.24%
|
16.09%
|
16.42%
|
|
ICICI Prudential All Seasons Bond Fund
|
10.79%
|
7.29%
|
9.34%
|
|
SBI Small Cap Fund
|
10.75%
|
14.62%
|
15.79%
|
|
ICICI Prudential Balanced Advantage Fund
|
12.66%
|
10.70%
|
10.09%
|
|
HDFC Hybrid Equity Fund
|
9.35%
|
9.77%
|
9.49%
|
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply
SIP Calculator to Calculate Returns on Mutual Funds Online
A SIP calculator is an online tool that helps you estimate the return on your SIPs in mutual funds. Most of the investors are opting for the SIP route to invest in mutual funds, which makes it one of the most popular investment options among millennials. The tool basically helps potential investors by giving them ideas regarding the returns that they can expect from their mutual fund investments. However, the actual returns would vary on the basis of various other factors. Please note that an online SIP calculator would not take into account the expense ratio and the exit load.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
17.8%
High Growth Fund
20.1%
India Consumption Fund
14.97%
Accelerator Mid-Cap Fund II
14.67%
Opportunities Fund
12.83%
Opportunities Fund
15.78%
Multiplier
15.13%
Virtue II
10.99%
Equity II Fund
13.98%
Accelerator Fund
11.55%
Pension Dynamic Equity Fund
14.42%
Frontline Equity Fund
12.59%
Equity Pension
11.73%
Equity Top 250 Fund
14.9%
Growth Opportunities Plus Fund
13.64%
Future Apex Fund
13.87%
US Equity Fund
