How to make 1 crore from monthly SIP of ₹13000? Easy ways to Get Returns

Investors keen to accumulate wealth by investing through the SIP route are keen to know how many years it will take for their monthly SIP investments to accumulate substantial amounts of money like ₹1 crore. An SIP of ₹13,000 per month can grow into a substantial amount of money with the help of best small-cap mutual funds, which provide excellent annualised returns (CAGR). Here we compare five of the best small-cap funds- Quant, Nippon India, SBI, HDFC, and Axis and try to calculate the number of years in which such an investment would be required to get to ₹1 crore.

The Beginning: Why ₹1 Crore?

₹1 crore is a fancy amount for several investors because it is frequently the mark of financial independence or a considerable corpus towards objectives such as wealth building, retirement, education, or real estate. Through steady investing, achieving this figure might not need a small fortune at the beginning but intelligent, long-term investment in growth instruments such as small-cap funds.

Regular SIP and Fund CAGR: The Growth Drivers

Monthly SIP: ₹13,000

Target Corpus: ₹1 crore

The CAGR of the fund significantly affects the timeline, with higher CAGR resulting in earlier success reaching the ₹1 crore level.

Estimated Years to Achieve ₹1 Crore in Each Fund

Fund Performance Breakdown

• Quant Small Cap Fund: Riding the fund's exposure to growth-oriented emerging businesses and successful stock picking, investors can achieve ₹1 crore in about 10 years with a remarkable CAGR of around 24%.
• Nippon India Small Cap Fund: At 22% CAGR, investors would need almost 11 years to achieve the ₹1 crore mark through ₹13,000 monthly investments.
• SBI Small Cap Fund: Famous for its steady performance, the fund's CAGR of around 21% means it would take around 11-12 years to reach ₹1 crore.
• HDFC Small Cap Fund: Like Nippon, it provides around 22% CAGR and thus the ₹1 crore target would be delivered in 11 years.
• Axis Small Cap Fund: Very slight of a conservative flavour at 20%, the fund would take approximately 12 years for SIP to reach ₹1 crore.

The Compounding Effect and Small-Cap Funds?

The power of compounding is shown in this analysis. The contribution made by the early years may appear insignificant, but in a decade or two, these figures tend to snowball exponentially because of reinvested returns and sustained market appreciation.

Though riskier, small-cap funds have always posted higher long-term returns than large-cap segments. For investors with greater risk tolerance and a longer time perspective, these funds can potentially speed up wealth generation.

Nutshell

A regular monthly SIP of ₹13,000 in well-known small-cap schemes such as Quant, Nippon India, SBI, HDFC, or Axis will enable investors to accumulate ₹1 crore in 10 to 12 years based on the fund's performance. This period emphasises the significance of early investment and long-term holding with discipline, taking advantage of the potential of the market through quality funds.

Disclaimer: The past performance is not a guide to future performance. Investors may wish to seek financial advice before investing. Also, the information provided in this article is for informational and educational purposes only. It is based on publicly available shareholding data and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Stock market investments involve risks, including the risk of loss of capital. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.