Can SIPs Help you Become Rich?

SIP is a short form of Systematic investment plans. It is an automated method of investing a fixed amount in mutual funds^^ every month. You can start investing in mutual funds even with a monthly SIP of Rs. 500. The best part is that the selected amount will be automatically deducted from your bank account every month and will be invested in mutual funds on a pre-decided date. It is a great way to automate your investing habits. The idea is to make the investment process simpler, as there is no defined rule to invest a particular amount or select a particular date. You can choose any date that looks comfortable to you.

Read more
Best SIPs
  • Guaranteed Tax Savings

    Guaranteed Tax Savings

    Under sec 80C & 10(10D)^
  • savings

    ₹1 Crore

    Invest ₹10k Per Month*
  • Zero LTCG Tax

    Zero LTCG Tax

    Unlike 10% in Mutual Funds
Top Performing SIP's with High Returns*
Invest ₹10k/month & Get ₹1 Cr Tax free*
We don't spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

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

benefits-sip benefits-sip

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.

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




ICICI Prudential All Seasons Bond Fund




SBI Small Cap Fund




ICICI Prudential Balanced Advantage Fund




HDFC Hybrid Equity Fund




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

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

How Does SIP Calculator Work?

It is quite simple and time saving to use a SIP calculator. You need to just enter the values like the investment amount, duration of investment, frequency of investment, and the expected rate of returns.

The maturity amount is generated on the basis of the compound interest formula on the basis of the value entered by you. This will give you a fair idea as to how much you should invest to build the desired corpus.


So, if you want to become rich you can see how SIPs health you gain wealth with the power of compounding. Even if you are a safe investor you can start your SIPs in mutual funds. It will save you from the hassle of timing the market. SIP calculators make it even easier by fiving you an idea as to how your investment portfolio would look like. However, the key to becoming rich or wealth creation is to stay invested for a long period of time in order to earn higher returns.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:-
^10(10D) Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
^^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.

Invest in SIP plans
starting ₹1,000/month

and Grow your wealth to meet
to your financial goals

View plans
Standard T & C Apply*
SIP Calculator
  • SIP
  • Lumpsum

Monthly Investment

₹500 ₹1L
Enter Monthly Investment

Total Investment

₹500 ₹10L
Enter Total Investment

Expected Rate of Return (Yearly)

1% 20%
Expected Rate of Return (Yearly)

Time Period

1 Year 30 Years
Enter Time Period
Total Investment
Interest Earned
Maturity Amount

SIP plans articles

Recent Articles
Popular Articles
Max Life SIP Plans

14 Feb 2024

Max Life SIP Plans are a type of Unit Linked Insurance Plan
Read more
Top Mid-Cap Funds for SIP in 2024

16 Jan 2024

Investing in Mid-Cap Funds through a Systematic Investment Plan
Read more
5 Common SIP Mistakes To Avoid in 2024

04 Jan 2024

Discovering the potential of Systematic Investment Plans (SIPs)
Read more
How to Achieve Financial Goals Faster with Step-Up SIPs in 2024?

04 Jan 2024

Step Up Systematic Investment Plan or Step Up SIP is a dynamic
Read more

01 Dec 2023

AMC SIP stands for Asset Management Company Systematic
Read more
Best SIP Plans for 5 Years Investment 2024
SIPs are a great way of investing in mutual funds^^ for both long and short terms. It helps inculcate an
Read more
Best SIP Plans for 1,000 Per Month in 2024
Systematic Investment Plans are an excellent way for you to invest in the best SIP plans for Rs. 1,000 per month
Read more
XIRR Calculator
Extended Internal Rate of Return (XIRR) is a key metric used in calculating return on investments. The XIRR
Read more
Best SIP to Invest for 10 Years
The Systematic Investment Plan or SIP allows you to choose a mutual fund^^ plan and invest a fixed amount
Read more
Index Fund SIP Calculator
An Index Fund SIP is a method of investing in index funds systematically over regular intervals. Index funds are
Read more

Download the Policybazaar app
to manage all your insurance needs.