India’s growing enthusiasm for systematic investment plans (SIPs) shows that even small monthly contributions can build substantial long-term wealth. For millions of first-time investors, especially those starting with ₹5,000 a month, the key questions remain, how to divide this amount, what funds to choose, and whether such contributions can eventually grow into a sizeable corpus like ₹1 crore.
SIP Participation Touches Record Highs
Data from the Association of Mutual Funds in India (AMFI) highlights how rapidly SIP adoption has increased. India had 5.2 crore SIP accounts in FY22, rising to 6.3 crore in FY23 and 8.4 crore in FY24.
By March 2025, active SIP accounts stood at 8.11 crore, with a remarkable 6.80 crore new accounts opened during the year. After peaking at 9.87 crore in September 2024, active accounts were still at 9.45 crore in October 2025, despite market volatility.
SIP inflows have surged as well, from ₹1.24 lakh crore in FY22 to ₹2.89 lakh crore in FY25, more than doubling in just three years. This reflects rising trust in systematic investing instead of trying to time the markets.
How to Allocate ₹5,000 Across SIPs
According to Abhishek Kumar, SEBI-registered RIA and founder of Sahaj Money, beginners should keep their portfolios simple. He recommends spreading ₹5,000 across two funds:
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₹3,000 in an index fund
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₹2,000 in a flexi-cap fund
This structure provides both diversification and simplicity, avoiding unnecessary complexity while offering a balanced mix of stability and growth potential.
Best Funds for First-Time Investors
Abhishek suggests that newcomers should avoid overthinking fund selection. A combination of index and flexi-cap funds generally suits most beginners due to lower costs and smoother performance.
For investors who want an equity–debt balance or are hesitant about full equity exposure, hybrid funds offer a more moderate risk profile.
Is One SIP Enough? Experts Say No
While many prefer putting the entire amount into one strong fund, advisers warn against concentration risk. Splitting investments into at least two SIPs reduces volatility and keeps the portfolio manageable without over-diversifying.
Can ₹5,000 a Month Really Make You a Crorepati?
Yes, if done with discipline. Abhishek explains that a step-up SIP, where the investor increases contributions by around 10% every year, significantly accelerates compounding.
Assuming a 12% average return, an SIP starting at ₹5,000 and rising each year can help achieve a ₹1 crore corpus in around 20 years.
Learning From Market Cycles
A Reddit user who recently achieved a ₹1 crore investment milestone shared their journey, which began in 2018 with a ₹5,000 SIP when their salary was just ₹20,000. The investor now contributes nearly ₹1.8 lakh per month.
Their biggest lesson: never stop SIPs during market corrections. Their portfolio remained flat at around ₹95 lakh between late 2024 and early 2025, but consistency paid off as markets recovered.
How Long It Takes to Reach ₹1 Crore With Different SIP Amounts
At an assumed 12% CAGR:
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₹5,000 per month → 26 years
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₹10,000 per month → 20 years
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₹20,000 per month → 15 years