Want to purchase an SUV? Here's how SIPs can help you build corpus — Check how much you need to invest each month

Smart financial planning requires an assessment of your current finances, risk tolerance, and future goals. It includes calculating your savings, investments and retirement fund before making investment decisions to ensure long-term stability and meet your financial targets. To be sure, investors may need to consult with a financial expert to conduct a detailed analysis of your financial goals over the short-, medium- and long-term.

Thus, if you plan to purchase an SUV in the next two to five years, here's how you can use the Systematic investment plan (SIP) to build adequate corpus. Notably, given the rising input costs, geopolitical pressures, taxes and inflationary factors, car prices may fluctuate, but you can use current prices for an estimated amount.

As of June 2026, the average prices of an SUVs in India ranges between ₹6 lakh for the basic models to upwards of ₹24 lakh depending on the features and luxury brand. Taking a mid-point estimate of ₹14 lakh, here's how much you will have to invest into an SIP to afford this over a two-, three-or five-year period.

Purchasing an SUV: Here's how much to invest in SIPs

• Two years: This is a highly unrealistic option for most average salaried individuals. To build a corpus of ₹14.43 lakh over two years, you will have to invest ₹53,000 per month in an SIP with 12% rate of return.
• Three years: A more abridged option, to build a corpus of ₹14.35 lakh over three years will require you to invest ₹33,000 monthly in an SIP with 12% rate of return.
• Four years: Even more achievable is the four-year investment in an SIP with 12% rate of return, where you put in ₹24,000 per month for a corpus of ₹14.84 lakh.

• Five years: The most realistic option, this requires you to invest ₹18,000 per month in an SIP with 12% rate of return for final corpus of ₹14.84 lakh.

What is an SIP? Why should you choose it?

Usually, car purchases are considered short-term goals (less than three years) alongside home renovation, building a emergency fund, and vacation planning. Options apart from SIPs include investment in debt mutual funds, fixed deposits, liquid funds or recurring deposits to meet these goals.

An SIP is a realistic option for most retail investors to build significant wealth through mutual funds. It allows investors to invest a fixed amount monthly into their preferred mutual fund scheme(s) and helps build wealth through the power of compounding.

• Easy and convenient: It's much more practical for most regular investors to set aside a monthly amount for investment rather than invest a full pot at once. This can start from ₹100 to ₹1,000 or even more, depending on your comfort and goals.
• Rupee cost averaging: When you buy MF units at different price points, you make the most of rupee cost averaging, which raises the chances of your profitability.
• Financial discipline: SIPs also help you inculcate financial discipline in your investing habits. Edelweiss MF's Radhika Gupta advises Gen Z to view this a hack to ensure all savings possible. “Oh... tax is deducted at source! Why not do the same with your savings? That’s SDS — Savings Deducted at Source. Automate your SIPs, RDs or FDs before you even see the money,” she suggests.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.