SIP Investment Trick 2026: You can become a millionaire even with a salary of Rs 30,000, know what is the magic of compounding?

Business Desk – SIP Investment Trick 2026: Even if your monthly salary is only Rs 30,000, you can create a fund of Rs 1 crore by adopting the right investment strategy. For this, what matters most is not huge income, but regular investment, long time and the power of compounding.

According to financial experts, the goal of becoming a millionaire can be achieved by investing a small amount every month through SIP (Systematic Investment Plan) in mutual funds.

How to start investing with a salary of Rs 30,000?

Financial experts recommend adopting the 50-30-20 rule for investment. According to this rule, 50% i.e. Rs 15,000 can be spent on essential expenses, 30% i.e. Rs 9,000 can be spent on lifestyle and other needs. After this, out of the remaining 20% ​​i.e. Rs 6,000, a SIP of Rs 5,000 can be started every month. This small start can create a big fund in the long run.

How to create a fund of Rs 1 crore from a SIP of Rs 5,000?

If you do SIP of Rs 5,000 every month and get an average annual return of 12% on investment, then in about 26 years your fund can exceed Rs 1 crore. Your total investment during this period will be around Rs 15.60 lakh (5,000 × 12 × 26), while the remaining amount will be made up of returns through compounding.

If an average annual return on investment is 15%, then this target can be achieved in approximately 21 years. In this situation, your total investment will be around Rs 12.60 lakh and the remaining amount will be related to the return on investment.

What is the magic of compounding?

Compounding means that the returns you get on your investment also start earning returns in the future. The longer you stay invested, the more visible the effect of compounding. This is the reason why even small SIPs can turn into big wealth in the long run.

You can become a millionaire faster with Step-Up SIP

If your salary increases every year, then keep increasing the SIP amount also. This is called Step-Up SIP. For example, start an SIP of Rs 5,000 in the first year and increase it by 10% every year. That means next year Rs 5,500, then next year Rs 6,050 and so on. If you get an average annual return on investment of 12% and you increase your SIP by 10% every year, then the target of Rs 1 crore can be achieved in about 19 years.

Keep these things in mind before starting investment

SIP is a market linked investment, hence there is no guarantee of returns. 12% or 15% are just examples of potential average returns. Before starting investment, assess your income, risk appetite and financial goals. Regular investment and discipline over a long period of time is considered to be the biggest key to success in SIP.