₹5,000/month SIP for 20 Years — Maturity Value & Returns 2026
A monthly SIP of ₹5,000 invested consistently for 20 years at an expected 12% annual return (after 0.5% expense ratio) grows into a corpus of approximately ₹46.26 L. Your total investment of ₹12.00 L generates a wealth gain of ₹34.26 L. Use the calculator below to adjust the return rate or time period.
Last updated: 20 May 2026, 11:00 AM IST
₹5,000/month SIP for 20 Years — Detailed Breakdown
Rajesh, a 30-year-old civil engineer at NHAI posted in Bhopal, treats his ₹5,000/month SIP as a parallel retirement fund alongside his EPF. Over 20 years and 240 months, his ₹12.00 L outlay compounds to ₹46.26 L — a gain of ₹34.26 L. His EPF (12% of basic salary) provides a fixed-income retirement corpus, while the equity SIP adds a growth layer. Together, they create a two-bucket retirement strategy: EPF for safe income, SIP for beating inflation. At year 10, Rajesh's equity corpus will be about ₹11.17 L. In years 11-20, the corpus adds roughly ₹35 L more — this hockey-stick growth in the second decade is why stopping a 20-year SIP at year 10 is the costliest mistake an investor can make. Rajesh plans to supplement this with NPS (National Pension System) starting age 40 for the additional ₹50,000 Section 80CCD(1B) tax deduction.
Data Sources
- AMFI — Mutual Fund NAV Data (2026) — www.amfiindia.com
- SEBI — Expense Ratio Guidelines (2025) — www.sebi.gov.in
- RBI — Inflation Data (2026) — www.rbi.org.in
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Important: This calculator provides estimates based on the inputs and assumptions you provide. Results are mathematical projections, not financial advice or recommendations. Actual outcomes will vary based on market conditions, policy changes, individual circumstances, and factors not captured by this tool. Verify all figures independently and consult qualified professionals before making financial decisions.
Founding Partner, Tykhe Ventures · Founder, Kompella Technologies
Founding Partner at Tykhe Ventures ($20M AUM, early-stage investing) and Founder of Kompella Technologies, which provides fractional CTO/CPO services to funded startups. NISM XIX-C certified. Built RupayWise because the financial tools available in India were either oversimplified or designed to sell you a product — not help you decide.
Frequently Asked Questions
SIP vs EPF — should I choose one or do both?
Do both. EPF earns 8.25% with sovereign guarantee and tax-free maturity — it is your safe base. An equity SIP at 12% targets higher returns with market risk. The combination gives you safety (EPF) plus inflation-beating growth (SIP). Never withdraw EPF early just because you have a SIP.
Why does the second decade of SIP add so much more than the first?
In years 1-10, a ₹5,000 SIP builds roughly ₹11.17 L. In years 11-20, the same SIP adds another ₹35 L. This is because the existing ₹11 L corpus also compounds alongside new contributions. The bigger the base, the faster compounding works — which is why quitting early destroys wealth.
Should I add NPS alongside my equity SIP?
NPS offers an extra ₹50,000 tax deduction under Section 80CCD(1B) — saving ₹15,600/year at the 30% tax bracket. However, NPS locks money until 60 and mandates 40% annuity. Use NPS for tax savings and guaranteed pension income; use SIP for flexible, accessible wealth.
What LTCG tax will I pay on ₹5,000 SIP after 20 years?
On a corpus of ₹46.26 L with ₹12.00 L invested, the capital gain is ₹34.26 L. After the ₹1.25 L annual exemption, you pay 12.5% on the rest. Tax payable is roughly ₹4.13 L. However, you can harvest gains annually to stay within the exemption limit — redeem and reinvest each year to reset cost basis.
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Disclaimer
This calculator provides estimates based on assumed return rates and does not guarantee actual investment returns. Mutual fund investments are subject to market risks. Past performance is not indicative of future results. The 12% return assumption is based on historical long-term equity fund averages and may not be achieved in practice. This is not investment advice — consult a SEBI-registered investment advisor for personalised recommendations. RupayWise is not a financial advisor or distributor.