A disciplined ₹24,000 monthly investment, combined with a 10% yearly step-up, can generate nearly ₹6 crore over 22 years through long-term compounding and diversified equity planning.
New Delhi (Economy India): Financial planning experts say that disciplined long-term investing can turn modest monthly contributions into a multi-crore retirement corpus. A calculation based on a ₹24,000 monthly SIP (Systematic Investment Plan), continued for 22 years, can potentially create a fund of up to ₹6 crore, provided the investor increases the contribution by 10% every year.
This projection is based on an assumed annual return of around 12%, a step-up SIP structure, and a well-diversified equity portfolio.
According to Pankaj Mathpal, MD – Optima Money Managers, a regular SIP of ₹24,000 per month at 12% returns may accumulate around ₹3 crore in 22 years.
However, adding a 10% yearly step-up (increasing SIP amount along with income growth) can double the outcome:
| Investment Pattern | Estimated Corpus in 22 Years |
|---|---|
| Flat ₹24,000/month SIP | ~₹3 crore |
| SIP + 10% annual step-up | ~₹6 crore |
Mathpal adds that increasing SIPs gradually helps fight inflation, improve compounding benefits, and accelerate wealth creation over long durations.
What Does the Sample Portfolio Contain?
The sample portfolio highlighted by experts includes diversification across market caps—large, mid, and small cap funds:
- Parag Parikh Flexicap Fund
- Kotak Multicap Fund
- ICICI Prudential Retirement Pure Equity Fund
- Invesco India Large & Midcap Fund
- Motilal Oswal Midcap Fund
- Bandhan Small Cap Fund
All six funds have ₹4,001 SIP each, which collectively make up the ₹24,000 monthly contribution. Analysts believe this spread helps balance risk and return while capturing market opportunities across segments.
Gold Allocation Recommended for Stability
To protect the portfolio from market volatility, experts recommend adding a small gold component:
- Suggested investment: ₹2,000–₹4,000 per month
- Via: Gold SIP, Gold ETF, or Gold Mutual Fund
- Purpose: Hedge against inflation and equity fluctuations
Gold traditionally performs well during uncertain or correction phases, making it a stabilizing pillar in long-term portfolios.
Why Retirement Funds With Lock-In Can Help
Some investors use solution-oriented funds like ICICI Prudential Retirement Fund, which carry a 5-year lock-in. While restrictive, the lock-in supports financial discipline and long-term compounding—key requirements for retirement planning.
Experts emphasize:
“Name of the fund matters less—asset allocation, discipline, and review frequency matter more.”
Expert Advice: Review Periodically, But Avoid Panic
- Review the portfolio every 12-18 months
- Replace funds only if performance remains weak for 3+ years
- Stay consistent with the step-up SIP strategy
- Prioritize long-term compounding over short-term market movements
Mathpal concludes:
“The biggest challenge is staying invested. If the investor maintains discipline, ₹6 crore for retirement is achievable without aggressive risk.”
(Economy India)
