Think ₹5.2 cr will make you rich? Inflation says it is worth just ₹90 lakh

Your ₹5.2 crore SIP corpus in 2055 will buy you only what ₹90 lakh can buy today - if inflation averages 6%

For millions of Indians, Systematic Investment Plans (SIPs) have become the go-to path to wealth creation. The logic seems simple — invest regularly, let compounding do its magic, and watch your corpus grow into crores.

 

But what if your ₹5.2 crore SIP corpus, accumulated over 30 years, doesn’t actually make you “rich”?

 

Financial advisor Vijay Maheshwari calls this the “dark side” of SIP investing — a side that many investors ignore: inflation, stagnating purchasing power, and static contribution rates.

 

The SIP Illusion: Big Numbers, Shrinking Value

 

Let’s say you invest ₹20,000 a month for 30 years and earn an annual return of 12%. On paper, your corpus grows to about ₹5.2 crore. That sounds like a lot.

 

 

But adjust that for inflation — and the story changes completely.

 

• If inflation averages 4%, your ₹5.2 crore will be worth around ₹1.6 crore in today’s money.
• At 5%, it drops to about ₹1.1 crore.
• At 6%, it’s roughly ₹90 lakh.
• And at 7%, the real value shrinks to barely ₹64 lakh.

 

In other words, the purchasing power of your ₹5 crore dream shrinks dramatically over 30 years. The number looks big, but what it can actually buy becomes smaller with time.

 

Inflation Eats More Than You Think

 

Inflation doesn’t just reduce your final corpus — it also inflates your living costs.

 

A family that spends ₹40,000 a month today could easily need ₹2 lakh to ₹3 lakh per month three decades from now. At that rate, even a ₹5.2 crore corpus might only sustain basic expenses for 10–12 years after retirement.

 

This is why Maheshwari warns that SIPs are powerful, but not magic. They help you invest regularly, but alone, they don’t make you rich. To build lasting wealth, you have to plan beyond the SIP number — and plan against inflation.

 

As Maheshwari puts it: “SIPs are powerful, but alone, they won’t make you rich. Plan smart, beat inflation, and secure your financial freedom.”

 

That means you can’t just “set and forget” your SIPs. You need to step them up, diversify across asset classes, and invest in real — not nominal — terms.

 

How to Survive the Dark Side of SIP

 

There’s nothing wrong with SIPs. What’s wrong is ignoring how money behaves over time. Here’s how to make your SIPs inflation-proof:

 

1. Step up your SIP every year.

Increase your contribution by at least 5–10% annually. This “step-up SIP” helps your investments grow with your income and inflation. A ₹20,000 SIP that rises by 10% every year can build a corpus twice as large as a flat SIP.

 

2. Diversify smartly.

Don’t rely on mutual funds alone. Add gold, real estate, and international equity to your portfolio. Gold and global assets often act as inflation hedges when domestic markets are volatile.

 

3. Think in real terms, not just numbers.

Focus on what your money can buy, not just the corpus figure. A 12% annual return in a 7% inflation world is only a 5% “real” return.

 

4. Revisit and rebalance.

Review your portfolio every year. If one asset class dominates, rebalance it. Staying diversified is key to staying resilient.

 

The Real Secret: Growth Plus Protection

 

Building wealth isn’t just about chasing high returns — it’s about protecting what those returns can buy. Real financial success means your money keeps up with your lifestyle, not just the market.

 

So if your retirement goal is ₹1 lakh a month in today’s terms, you should actually plan for ₹3–4 lakh a month thirty years from now. And that means adjusting your SIPs, diversifying your portfolio, and staying invested through the ups and downs.

 

If you’re investing through SIPs, don’t stop. Just make them smarter. Step them up, diversify them, and stay aware that your goal isn’t just to build wealth — it’s to preserve purchasing power.

 

Because a ₹5 crore dream means little if it only buys what ₹90 lakh can today. 

SIPs remain one of the smartest investing tools — but they’re not a magic formula for wealt