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₹10,000 SIP for 20 years can create ₹87.3 lakh on paper, but could you afford it every month? Here’s what investors miss
Mint 1 hr ago·8 Sept 2026, 6:01 am
A Systematic Investment Plan (SIP) of ₹10,000 per month can grow to ₹87.3 lakh over 20 years, but this figure assumes you can maintain that fixed monthly contribution. In reality, inflation erodes purchasing power, meaning that ₹10,000 today represents a much larger share of your income than it would have 20 years ago. Investors often overlook this, focusing only on the final amount while failing to account for the rising cost of living that would have made such a fixed contribution difficult to sustain in the past.
This highlights the importance of adjusting SIP amounts for inflation. An income-adjusted SIP, where you increase your monthly investment as your earnings grow, would have yielded a significantly lower final corpus of ₹31.9 lakh. While the absolute returns are lower, this approach is more realistic and sustainable. For retail investors, it is crucial to plan for inflation when setting up SIPs to ensure that the investments remain affordable and aligned with their long-term financial goals.
Excerpt from Mint
A ₹ 10,000 monthly SIP may look affordable today, but the same amount would not have been affordable to most investors 20 years ago. Its affordability-adjusted analysis shows a ₹ 10,000 flat SIP could have grown to ₹ 87.3 lakh, compared with ₹ 31.9 lakh for an income-adjusted SIP over the same period. SIP calculators…Read the original at Mint
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