SIP of ₹20000–40000 a month: Most articles on SIPs make ₹1 crore sound routine set an auto-debit, forget about it, and wake up rich. That’s not how it plays out on the ground. I’ve seen enough real portfolios, missed mandates, panic exits, and paperwork messes to say this clearly: reaching ₹1 crore via SIP is possible, but far fewer people actually get there than headlines suggest.
This piece is for people who want a realistic answer, not motivation posters.
First, the math without exaggeration
Let’s assume equity mutual funds, not fixed income. Returns are uncertain, so we’ll use realistic long-term ranges, not best-case charts.
Monthly SIP: ₹20,000
- At ~10% annual return → ~18–19 years to reach ₹1 crore
- At ~12% annual return → ~16–17 years
- At ~14% annual return (hard, not guaranteed) → ~14–15 years
Monthly SIP: ₹40,000
- At ~10% → ~12–13 years
- At ~12% → ~10–11 years
- At ~14% → ~9 years
These timelines assume uninterrupted investing, no panic withdrawals, and no long gaps.
Already, many people drop out here.
Why most people don’t reach ₹1 crore (or reach it much later)
This is the part glossy articles skip.
1. SIPs don’t “run automatically” in real life
On paper they do. On the ground:
- Bank mandate fails after account changes
- Salary credit is delayed → SIP bounces
- One bounce leads to SIP cancellation
- People don’t notice for months
Missed SIPs break compounding far more than people realize.
2. People stop or reduce SIPs at the worst time
When markets fall:
- SIP statements look ugly
- Friends say “wait till things settle”
- News screams recession
So people pause SIPs exactly when they should continue.
In real portfolios, this single behavior adds 3–5 extra years to the journey.
3. Job instability breaks consistency
Very common at ₹20k–40k SIP levels:
- Job switch
- Career break
- Medical expense
- Family obligation
SIPs are quietly stopped “for a few months” that turn into years.
Compounding hates gaps.
4. Returns are not smooth or polite
Most projections quietly assume:
- Stable returns
- No long sideways markets
Reality:
- 2–3 years of flat returns are normal
- One bad decade can distort averages
- Your SIP result depends heavily on sequence of returns, not just the average %
People who start just before a bad phase take longer and many quit before recovery.
5. Fund hopping kills discipline
Ground reality:
- Underperforming fund after 1–2 years
- Switch to “top-rated” fund
- Repeat cycle
Each switch resets patience and often locks in underperformance.
6. Tax and withdrawal leakage
₹1 crore is often quoted before tax.
But:
- Long-term capital gains tax applies
- Many people withdraw partially for “temporary needs”
- That money rarely goes back
Your actual usable amount is often 10–20% lower than the headline number.
High-chance vs low-chance investors (be honest with yourself)
High-chance investors (reach ₹1 crore roughly on time)
You likely belong here only if:
- Stable income with emergency fund already built
- SIP amount ≤ 25–30% of monthly take-home
- Will not stop SIP during market crashes
- Comfortable seeing portfolio down 30–40% temporarily
- Minimal fund switching
- SIP is not your only financial plan
These people are boring, disciplined, and emotionally detached. They succeed.
Low-chance investors (delay, underperform, or quit)
You’re likely here if:
- SIP depends on bonuses or variable income
- No emergency fund (SIP becomes the first casualty)
- You check NAVs daily
- You expect SIPs to “beat inflation easily”
- You plan to stop SIPs during bad markets
- You think past 3-year returns = future returns
These investors don’t fail because SIPs don’t work.
They fail because human behavior interrupts compounding.
The uncomfortable truth about “₹1 crore goals”
- ₹1 crore 15 years later is not what ₹1 crore is today
- Inflation quietly eats purchasing power
- Medical, housing, and education costs rise faster than SIP projections
So even if you reach the number, it may not feel like success unless expectations are grounded.
Is a ₹20k–40k SIP worth your time?
Yes, if:
- You treat it as a long, boring process
- You don’t expect miracles
- You can stay invested through discomfort
- You accept that timelines can stretch
No, if:
- You want fast, visible results
- You plan to pause during uncertainty
- You are already financially stretched
- You believe compounding works without discipline
SIPs are not a shortcut. They are a test of consistency and emotional control.
If you pass that test, ₹1 crore is achievable.
If you don’t, no calculator can save you.
That’s the reality most people only learn the hard way.