Why ₹5,000 SIP is Perfect for Beginners
Starting with ₹5,000 per month is ideal for several reasons:
- Affordable: Even on a ₹30,000-40,000 salary, ₹5,000 is manageable
- Builds discipline: Creates the habit of regular investing
- Significant growth: Becomes ₹50 lakh in 20 years - enough for major goals
- Room to increase: Start here, increase as your income grows
What Can ₹5,000 SIP Fund?
- 10 Years (₹11.6L): Down payment for a car, emergency fund
- 15 Years (₹25.2L): Child's education, home down payment
- 20 Years (₹49.9L): Major life goals, early retirement fund
- 25 Years (₹94.8L): Near-crore corpus for retirement
Frequently Asked Questions
Is ₹5,000 per month enough to build wealth?
Absolutely! ₹5,000/month for 20 years at 12% returns creates ₹49.9 lakh. For 25 years, it becomes ₹94.8 lakh. Start early and stay consistent.
Which funds should I choose for ₹5,000 SIP?
For beginners, start with a single diversified equity fund - either a Flexi-cap fund or a Nifty 50 index fund. Keep it simple until you learn more.
Should I increase my SIP from ₹5,000?
Yes, whenever your income increases. Even a 10% annual step-up transforms your 10-year corpus from ₹11.6L to ₹18.4L - that's 58% more wealth.
Can ₹5,000 SIP make me a crorepati?
Yes, but it takes time. At 12% returns, ₹5,000/month reaches ₹1 crore in about 27 years. With 10% step-up, you can reach ₹1 crore in ~22 years.