Neutral impactSector
₹5,000 monthly small-cap SIP for 20 years: How much could your daughter get at 25?
Mint 1 hr ago·16 Oct 2026, 2:16 am
A systematic investment plan (SIP) of ₹5,000 monthly in a small-cap mutual fund can potentially grow substantially over 20 years. For instance, a hypothetical 12% annual return could result in a corpus of over ₹40 lakh, while a higher 18% return could push the amount to nearly ₹1.1 crore. This illustrates the power of compounding and the growth potential of equity markets over the long term.
However, small-cap funds are known for their high volatility. While they offer the chance for significant returns, they also carry a higher risk of short-term fluctuations compared to bank deposits. Investors must be prepared for market swings and should consider their risk tolerance before committing to such a strategy.
Before starting, it is advisable to consult a financial advisor to align the investment with your financial goals. A long-term horizon is generally recommended to ride out market volatility and maximize the benefits of compounding.
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