Imagine you are on your first Trek, standing at the base of a mountain looking all the way up wondering, how will you ever reach on the top. This is a feeling many new investors go through when they are about to begin their investment journey.
In today’s world where everyone is busy flaunting their big size portfolios and the huge amount worth of SIPs they make every month, it is natural for a beginner investor to get intimidated and wonder, “Will I ever be able to achieve this?”
For building wealth, you don’t need to take a giant leap; but only small steps in the right direction consistently. That’s the power of consistency and compounding. And with just ₹5000 a month, you can build a portfolio of ₹25 Lakhs.
Seems unrealistic? No, it is achievable with just two tools by your side. What are they and how will they help you; today we are just going to show you how. So, let’s begin.
The powerful combo of Time and Consistency through SIP
SIPs allow you to invest a fixed amount of money every month or the frequency of your choice in mutual funds regardless of whatever’s happening in the markets. While the money is being invested, it doesn’t sit idle and keeps earning returns over time. That is when compounding also factors in wherein, the returns earned also start earning returns.
It is like planting a seed, seeing it grow into a tree and bear fruits, and sowing the seeds from the fruit grow into a whole new tree. The key though is Time and Consistency. Your money won’t grow overnight but over time!
Let us understand through a table how many years will it take to accumulate ₹25 Lakhs if you invest ₹5,000 a month assuming different annual returns.
Est. number of years it takes to reach ₹25 Lakhs
(Add this as a Table block)
| Fund Category | Category Returns | Est. Number of Years |
|---|---|---|
| Equity: Large Cap | 12.91% | 15 |
| Equity: Flexi Cap | 14.3% | 14 |
| Hybrid: Balance Advantage Funds | 10.93% | 16 |
| Debt: Gilt Funds | 8.07% | 19 |
Source: Value Research & EduFund Internal Research
Category returns are 10Y trailing returns as on 03 Jul 2025
As you notice, the amount of time taken decreases with higher returns & higher risk. There is also an additional way through which you can decrease the time taken to reach your target portfolio, let us see how.
Boosting Wealth through Top-Up SIPs
Step-Up SIPs or Top-Up SIPs allow you to consistently increase the amount of your SIP. It allows you to choose the interval on increase, and proportion or amount of the increase. Through this way, you get to grow your investments as your income also grows.
The table below shows the estimated number of years it will take to reach the target portfolio value with 5% or 10% annual Top-Up SIP.
Time taken to reach Portfolio Target with ₹5000 Top-Up SIP
(Add this as a Table block)
| Top Up % | Estimated Number of Years |
|---|---|
| 5% | 13 – 14 Years |
| 10% | 12 – 13 Years |
Source: Value Research, EduFund Internal Research
Assumed Equity Large Cap Returns for calculation
As you can see, little increases over years brings down the time taken by up to 2 years. Step-Up SIP can be a good option for investors who don’t want to commit to a high amount currently but want to grow their contribution as their income increases.
Still think this is too long?
It is completely normal to look at these numbers and think – “13 – 15 years is still high for accumulating the amount.” But look at where we began; believing the target is unrealistic. And now it seems achievable.
You are investing ₹5,000 a month which we usually spend out on leisure, eating out or subscriptions every month. But this amount is helping you accumulate a portfolio that can be useful to fund the downpayment of your house, your children’s higher education funds, or even your dream car. And all it takes is Time & Consistency.
Closing Notes
Most of us underestimate what we can achieve with consistency and with long period of time. A portfolio of ₹25 Lakh may seem too distant to achieve but with small steps and consistency, it is possible. Even big oceans begin with a drop of water. So, you don’t need to start big. YOU NEED TO START!
Disclaimer
The data in this presentation are meant for general reading purpose only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. The information placed on the presentation is for informational purposes only and does not constitute as an offer to sell or buy a security.
The Company reserves the right to make modifications and alterations to the content available on the presentation. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment.
The EduFund platform & the website is owned, operated and maintained by Helena Edtech Private Limited, a company incorporated under the laws of India. An affiliate of the Company, i.e. Edubillions Tech Private Limited is registered with AMFI as mutual fund distributor bearing the registration number ARN258733.
Investment in securities market are subject to market risks, read all the related documents carefully before investing.
About the author
Niraj Satnalika
Head Of Research,EduFund
Dr. Niraj is a finance professional with 12+ years of experience and is part of the founding team at EduFund. He’s worked with Goldman Sachs, CRISIL and Sakal Media in roles spanning investment management, research and leadership. With a PhD in Finance from IIT Bombay, he brings deep expertise in valuation, governance and education planning. When he’s not teaching or writing, you’ll find him cooking or going on long drives.
