How to Become a Crorepati by SIP of 5,000 per Month?

Regularly investing small amounts in mutual funds^{^^} or insurance plans can make your goal to become a crorepati achievable. For example, with a monthly SIP of ₹5,000 and an annual return of 12%, you can become a crorepati in 27 years. A SIP plan leverages the power of compounding and rupee cost averaging and offers you a disciplined and efficient way to build wealth.

SIP Plan Benefits

Start SIP with as low as ₹1000

No hidden charges

Save upto ₹46,800 in Taxunder section 80C^{^}

Zero LTCG Tax^¶

Disciplined & worry-free investing

Insurance Companies
Mutual Funds

Fund Name	5 Years	7 Years	10 Years
	Returns
High Growth Fund Max Life Rating	24.84%	18.57%	16.4% View Plan
Top 200 Fund Tata AIA Rating	24.04%	20.03%	16.77% View Plan
Accelerator Mid-Cap Fund II Bajaj Allianz Rating	17.43%	10.73%	13.2% View Plan
Opportunities Fund HDFC Standard Rating	17.56%	12.29%	13.33% View Plan
Equity II Fund Canara HSBC Oriental Bank Rating	11.56%	9.27%	8.64% View Plan
Grow Money Plus Fund Bharti AXA Rating	15.75%	13.48%	12.67% View Plan
Multiplier Birla Sun Life Rating	18.22%	11.28%	14.04% View Plan
Opportunities Fund ICICI Prudential Rating	15.71%	11.97%	10.97% View Plan
Flexi Growth Fund LIC Rating	-	-	- View Plan
Virtue II PNB Metlife Rating	20.71%	15.98%	14.2% View Plan

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Last updated: Feb 2025

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Fund Name	3 Years	5 Years	10 Years
	Returns
Active Fund QUANT	23.92%	31.48%	21.87%
Flexi Cap Fund PARAG PARIKH	20.69%	26.41%	19.28%
Large and Mid-Cap Fund EDELWEISS	22.34%	24.29%	17.94%
Equity Opportunities Fund KOTAK	24.64%	25.01%	19.45%
Large and Midcap Fund MIRAE ASSET	19.74%	24.32%	22.50%
Flexi Cap Fund PGIM INDIA	14.75%	23.39%	-
Flexi Cap Fund DSP	18.41%	22.33%	16.91%
Emerging Equities Fund CANARA ROBECO	20.05%	21.80%	15.92%
Focused fund SUNDARAM	18.27%	18.22%	16.55%

Last updated: Feb 2025

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˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

How to Become a Crorepati by SIP?

A Systematic Investment Plan (SIP) is a powerful way to build wealth over time. By starting with as little as ₹5,000 per month, disciplined investing over time can help you accumulate ₹1 crore or more.

The following category of SIPs can help you to become crorepati from SIP:

Regular SIP:

This involves investing a fixed amount every month without any increase in the investment amount over time. For example, if you invest ₹5,000 monthly for 27 years at an average annual return of 12%, you could accumulate approximately ₹1 crore.

Step-Up SIP:

This strategy allows you to increase your monthly investment by a certain percentage each year. For instance, starting with ₹5,000 and increasing it by 10% annually can accelerate your path to becoming a crorepati.

SIP Type	Monthly Investment	Duration (Years)	Expected Annual Return	Estimated Corpus
Regular SIP	₹5,000	27 years	12% p.a.	~₹1.08 Crore
Step-Up SIP	₹5,000 + 10% p.a.	21 years	12% p.a.	~₹1.16 Crore

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

16.4%

High Growth Fund

16.77%

Top 200 Fund

13.2%

Accelerator Mid-Cap Fund II

13.33%

Opportunities Fund

8.64%

Equity II Fund

11.62%

Accelerator Fund

12.67%

Grow Money Plus Fund

14.04%

Multiplier

10.82%

Equity Top 250 Fund

11.19%

Future Apex Fund

10.97%

Opportunities Fund

12.76%

Frontline Equity Fund

14.2%

Virtue II

9.39%

Pension Dynamic Equity Fund

10.45%

Equity Fund

9.07%

Blue-Chip Equity Fund

SIP Calculator to Estimate the Duration to Become Crorepati by SIP of 5000 per Month

A SIP calculator helps estimate the corpus based on monthly investment, duration, and expected return.

Monthly SIP (₹)	Duration (Years)	Expected Return (% p.a.)	Corpus (₹)
₹5,000	21 years	12%	~50 lakhs
₹5,000	27 years	12%	~1 crore
₹5,000	33 years	12%	~2.1 crore

Example: If you invest ₹5,000/month for 27 years at a 12% return, your corpus will grow to ₹1 crore.

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Step-Up SIP Calculator to Estimate Duration to Become Crorepati by Step-Up SIP of 5000 per Month

A Step-Up SIP increases the monthly SIP amount periodically (e.g., by 10% annually), accelerating wealth creation. You can estimate the maturity amount for the increasing sip investments through a Step-up SIP Calculator.

Initial SIP (₹)	Annual Step-Up (% p.a.)	Duration (Years)	Expected Return (%)	Corpus (₹)
₹5,000	10%	16 years	12%	~50 lakhs
₹5,000	10%	21 years	12%	~1 crore
₹5,000	10%	25 years	12%	~2 crore

Example: If you start with ₹5,000/month, increasing by 10% yearly, your corpus can reach ₹2 crore in 25 years.

start-an-sip-today-watch-your-money-grow

Benefits of SIP Investment to Become Crorepati

Investing through SIPs offers several advantages:

Start Small: You can begin with as little as ₹100.
Disciplined Saving: Regular investments promote financial discipline.
Rupee Cost Averaging: You buy more units when prices are low and fewer when high.
Professional Management: Funds are managed by experts who optimise returns.
Flexibility: You can pause or adjust your investments as needed.

How to Invest in SIP of ₹5000 per Month?

Investing in an SIP is straightforward:

Choose a Market-Linked Fund: Research and select a fund that aligns with your financial goals.
Complete KYC Process: Ensure you have completed your Know Your Customer (KYC) requirements.
Set Up ECS/NACH Mandate: Authorize automatic deductions from your bank account for monthly contributions.
Start Investing: Begin with your chosen amount and enjoy the benefits of power of compounding over time.

start-small-&-build-your-wealth-for-a-brighter-tomorrow

FAQs

What is a SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. It allows you to invest small amounts over time, which can lead to significant wealth accumulation.
How much should I invest in SIP to become a crorepati?

Investing ₹5,000 per month in a SIP can help you accumulate around ₹1 crore over 27 years, assuming an average annual return of about 12%.
What are the benefits of investing ₹5,000 per month in SIP?

Regular investments through SIPs promote disciplined saving, leverage compounding, and reduce the impact of market volatility through rupee cost averaging.
Can I start a SIP with ₹5,000?

Yes, you can start a SIP with as little as ₹500, but investing ₹5,000 monthly is a solid strategy for building wealth over time.
How does compounding work in SIP?

Compounding allows your investment returns to generate their own returns over time. The longer you stay invested, the more your money grows exponentially.