SIP ₹2,000/Month for 15 Years: Real Returns

What You Invest vs What You Get

Over 15 years you contribute ₹3.60 L from your pocket (₹2,000 × 180 months). At a 12% CAGR that becomes ₹10.09 L, so compounding adds ₹6.49 L on top of what you put in. The longer you stay invested, the larger this gains-to-contribution ratio becomes.

The Number Apps Don't Show: Real Value

₹10.09 L in 15 years is not ₹10.09 L of today's purchasing power. After 6% average inflation, it buys what about ₹4.21 L buys today. That's still real growth: your money grows faster than prices, but the honest figure is the inflation-adjusted one, not the headline number.

Tax on Your Gains (LTCG)

Equity mutual fund units held over 12 months qualify for Long-Term Capital Gains tax: 12.5% on gains above the ₹1.25 lakh annual exemption (Income Tax Act 2025). On ₹6.49 L of gains, a one-shot redemption implies roughly ₹68,140 in LTCG tax, leaving about ₹9.41 L. Redeeming in tranches across financial years lets you use the ₹1.25 lakh exemption each year and can reduce this materially.

How to Improve This Outcome

₹2,000/month for 15 years. The main advantage at this stage is time. A small automatic contribution builds the investing habit while giving you experience with market rises and falls. If broad equity exposure suits your goal, time horizon, and risk tolerance, a low-cost index fund can keep the first portfolio simple.

• Step up the SIP. Raising ₹2,000 by 10% every year as your income grows beats a flat amount by a wide margin over 15 years.
• Stay the full tenure. The biggest compounding happens in the later years: stopping early forfeits most of the gains.
• Keep costs low. A direct-plan Nifty 50 index fund (0.1–0.2% expense ratio) preserves more of the 12% than a high-cost regular plan.
• Redeem in tranches. Spreading withdrawals across financial years uses the ₹1.25 lakh LTCG exemption repeatedly.