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Building a retirement corpus of ₹2 crore may sound difficult to many investors, especially those who believe that only large monthly investments can create substantial wealth. However, financial experts say that consistency, time, and disciplined investing matter far more than starting with a big amount. A recent explanation by Chartered Accountant Nitin Kaushik clearly shows how even a modest monthly SIP, when increased gradually, can grow into a massive corpus by the age of 50.

If you are planning to start a SIP or want to upgrade your existing investment using a step-up strategy, this approach can be a real eye-opener.

Small SIPs Can Create Big Wealth Over Time

Many people ignore small SIP amounts, assuming they will not make a meaningful difference. But CA Nitin Kaushik highlights that a monthly SIP of just ₹18,000, if managed smartly, can help you accumulate ₹2 crore or even more over the long term.

According to him, the real strength of SIPs does not lie in short-term gains but in patience, discipline, and the power of compounding. While returns may look ordinary in the first two to three years, staying invested for two decades can significantly strengthen your financial future, especially for retirement planning.

₹2 to ₹2.5 Crore Corpus by Early 50s

Sharing his views on social media platform X (formerly Twitter), CA Nitin Kaushik stated that an ₹18,000 monthly SIP may seem insignificant to many. However, if this SIP is increased by just 6 percent every year and earns an average annual return of 10 percent over 20 years, it can grow into a corpus of approximately ₹2 to ₹2.5 crore by the time an investor reaches their early 50s.

This example reinforces a crucial investment lesson: starting early and increasing investments gradually can deliver powerful results without putting pressure on monthly finances.

Step-by-Step Calculation: How ₹2 Crore Is Achieved

Let us understand the numbers behind this strategy. An investor begins with a monthly SIP of ₹18,000 and increases the contribution by 6 percent every year. The investment continues for 20 years with an assumed annual return of 10 percent.

Over this period, the total amount invested comes to around ₹79.45 lakh. However, due to compounding, the gains exceed ₹1.20 crore, resulting in a final corpus of approximately ₹2 crore.

Investment Breakdown:

• Monthly SIP: ₹18,000

• Annual Step-Up: 6%

• Expected Annual Return: 10%

• Investment Duration: 20 years

• Total Invested Amount: ₹79,45,688

• Estimated Returns: ₹1,20,78,996

• Final Corpus: ₹2,00,24,683

(Source: Groww)

This calculation clearly shows how long-term investing amplifies wealth, even when the starting amount is relatively small.

Can This Corpus Generate Monthly Income After Retirement?

One of the biggest concerns for retirees is steady monthly income. CA Nitin Kaushik explains that a ₹2 crore corpus can comfortably provide regular income without exhausting the fund.

If an investor withdraws 5 percent annually from a ₹2 crore corpus, it translates to a monthly income of about ₹80,000. Assuming the remaining amount continues to earn a return of around 6 percent annually, the corpus can last for decades.

Post-Retirement Income Illustration:

• Initial Corpus: ₹2,00,00,000

• Monthly Withdrawal: ₹80,000

• Expected Annual Return: 6%

• Withdrawal Period: 30 years

• Total Withdrawal in 30 Years: ₹2,88,00,000

• Remaining Corpus After 30 Years: ₹3,96,88,495

(Source: SBI Securities)

This means an investor not only enjoys a stable income for 30 years but may also leave behind a substantial amount.

Key Takeaways for Investors

This example highlights three essential principles of wealth creation:

• Start investing as early as possible

• Increase your SIP amount gradually every year

• Stay invested for the long term without reacting to short-term market fluctuations

A disciplined step-up SIP strategy can help you achieve financial independence without putting stress on your monthly budget.

Disclaimer: This article is for informational purposes only. It does not constitute investment advice. IEN does not recommend investing in any specific stock, mutual fund, or IPO. Investors are advised to consult a qualified financial advisor before making any investment decisions.