Which SIP strategy can build higher corpus in long term: Rs 30,000 for 5 Years vs Rs 5,000 for 30 Years?

A Systematic Investment Plan (SIP) is a smart way to grow wealth by investing a fixed amount regularly in mutual funds. But one common dilemma many investors face is whether it’s better to invest a smaller amount over a longer period or a larger sum for a shorter time.

Let’s understand this concept through calculations and see which of the following two options will generate a higher corpus:
- Rs 30,000 SIP every month for 5 years.
- Rs 5,000 SIP every month for 30 years.

Here, we’ll see the potential growth of each strategy with varying return rates and explain how time and compounding play a significant role in building wealth.

How much corpus can you generate in 5 years with a Rs 30,000 monthly SIP?

At 12% Annualised Return Rate

With an annualised return rate of 12 per cent, you can accumulate approximately Rs 24.3 lakh in 5 years by investing Rs 30,000 every month.

Full Calculations for Rs 30,000 SIP over 5 Years (12% return rate):

- Total Investment: Rs 18,00,000
- Expected Capital Gain: 6,33,108
- Total Corpus: Rs 24,33,108

At 13% Annualised Return Rate

At a 13 per cent annual return, your investment grows to approximately Rs 24.9 lakh in 5 years.

Full Calculations for Rs 30,000 SIP over 5 Years (13% return rate):

- Total Investment: Rs 18,00,000
- Expected Capital Gain: Rs 6,94,106
- Total Corpus: Rs 24,94,106

At 14% Annualised Return Rate

At a 14 per cent annual return, your corpus could reach Rs 25.5 lakh in 5 years.

Full Calculations for Rs 30,000 SIP over 5 Years (14% return rate):

- Total Investment: Rs 18,00,000
- Expected Capital Gain: Rs 7,56,482
- Total Corpus: Rs 25,56,482

Also Read: FD Rates for Rs 10 lakh investment: Compare SBI, PNB, HDFC, ICICI, and Post Office 5-year fixed deposit returns

How much corpus can you generate in 30 years with a Rs 5,000 monthly SIP?

At 12% Annualised Return Rate

At an annualised return rate of 12 per cent, your Rs 5,000 monthly SIP will grow to approximately Rs 1.54 crore over 30 years.

Full Calculations for Rs 5,000 SIP over 30 Years (12% return rate):

- Total Investment: Rs 18,00,000
- Expected Capital Gain: Rs 1,36,04,866
- Total Corpus: Rs 1,54,04,866

At 13% Annualised Return Rate

With a 13 per cent annual return, your corpus could grow to approximately Rs 1.88 crore over 30 years.

Full Calculations for Rs 5,000 SIP over 30 Years (13% return rate):

- Total Investment: Rs 18,00,000
- Expected Capital Gain: Rs 1,70,07,595
- Total Corpus: Rs 1,88,07,595

At 14% Annualised Return Rate

At a 14 per cent return, you could accumulate about Rs 2.29 crore in 30 years with a Rs 5,000 monthly SIP.

Full Calculations for Rs 5,000 SIP over 30 Years (14% return rate):

- Total Investment: Rs 18,00,000
- Expected Capital Gain: Rs 2,11,98,103
- Total Corpus: Rs 2,29,98,103