Ask most first-time investors how much they should put into a SIP and they quote a number. Ask them when they should begin and they shrug. Yet when you work the maths, the second question matters far more than the first.

In this guide we fix one target, ₹1 crore at age 60, and work backwards. How much must you invest every month if you begin at 25, 30, 35, 40 or 45? We then test those answers against slower markets, rising prices and tax, and finish with a practical 30-day plan. All data and rules used here are Indian.

Working backwards from ₹1 crore

Think of ₹1 crore as the finish line and your age as the starting block. The table shows the monthly SIP required, assuming your money grows at 8%, 10% or 12% a year and you never skip an instalment.

Illustration: fixed monthly SIP, compounded monthly, ₹1 crore at age 60, before fund costs and tax.

Notice what happens between 25 and 45. The monthly amount rises nine-fold, from about ₹2,600 to about ₹24,000, while the target stays the same. A 45-year-old ends up paying in almost four times the money a 25-year-old does to reach the identical goal.

The hidden price tag of waiting

At 10% a year, delaying your start from 30 to 31 lifts the SIP you need by about 11%. The penalty keeps growing because the final years of any SIP do most of the work, and every year you skip is one of those years.

Most people picture a delay as losing a year of savings. The real loss is a year of compounding on the biggest balance you will ever hold. That is why a late start cannot be fixed by saving a little harder for a short while.

Aarav and Meera: a tale of two timelines

Two friends each put ₹5,000 a month into an equity-oriented fund that earns an assumed 10% a year. Aarav begins at 25, invests for ten years, then stops and leaves the money alone. Meera waits until 35, then invests every month until she turns 60.

Meera pays in two and a half times as much money and still finishes with roughly half of Aarav’s total. This is an extreme comparison, and we are not suggesting anyone stop investing at 35. The point is that early rupees are the most valuable rupees you will ever invest.

What twenty years of real Indian markets looked like

Projections are assumptions, so it helps to look at a real record. HDFC Mutual Fund’s investor-education material shows a ₹1,000 monthly SIP in HDFC Flexi Cap Fund, increased by 10% every year for 20 years. The total invested was ₹6.87 lakh and the value on 31 August 2026 was ₹26.50 lakh.

The same material also shows the climb was uneven, with a visible dip around 2020 before recovery. Investors who stayed on through the fall were the ones who benefited. This is one fund’s history, shown for education. Past performance may or may not be sustained, and it is not a recommendation.

Stress-testing the plan

• Slower returns. Look back at the table. At 8%, a 35-year-old needs about ₹10,500 a month instead of ₹7,500. Plan with a buffer rather than assuming the best case.
• Rising prices. Retail inflation was 4.82% in August 2026 according to MoSPI, and the RBI projects about 5% for 2026-27. At 5% a year, ₹1 crore thirty years from now buys what roughly ₹23 lakh buys today. At 6%, it is closer to ₹17 lakh. So treat ₹1 crore as a starting target and revisit it as prices move.
• Rising your SIP. A 30-year-old who starts at ₹4,424 can reach ₹1 crore with a flat SIP. Starting at only about ₹2,800 and raising it 5% each year gets there too. Starting at about ₹1,570 and raising it 10% yearly also works, which suits people whose salary grows.

Tax in plain words

Tax applies when you sell, not while the money is growing. The rules for equity-oriented mutual funds in FY 2026-27 are below. They can change, so confirm them before you act.

Fund expense ratios also trim your returns every year. Compare them before choosing a scheme.

Get these basics right before you scale up

A SIP only compounds if you can keep it running. These four checks protect it from being cancelled by a bad month.

If you are missing an emergency fund, begin with a SIP of ₹1,000 to ₹2,000 and direct the remaining savings to the fund. Raise the SIP once the cushion is in place.

India’s investing boom, in numbers

Participation is rising quickly, led by younger Indians. Understanding is catching up more slowly.

Sources: NSE Market Pulse, AMFI monthly data, NCFE Financial Literacy and Inclusion Survey 2019.

AMFI’s SIP stoppage ratio stood at 81.1% in August 2026. It compares SIPs that ended or matured with new ones registered that month, so it does not mean most investors quit. It is a reminder that starting a SIP is easy and finishing one takes discipline and knowledge.

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