How To Make Rs 1 Crore Starting At Age 35? An Investment Roadmap

Financial planning should always align with major life events. It’s advisable to plan investments as per future needs at the different stages of life. As you progress through your personal and professional spheres, responsibilities grow. Your investment goals should also align with the rise in income.

Mid-career professionals, those in their 30s, need to evaluate their investments carefully as they juggle multiple responsibilities. If you are planning to start your wealth accumulation journey at the age of 35, there are multiple options. For building a sizable corpus of Rs 1 crore, it is ideal to assume an investment horizon of at least 15 years. This allows the investor to benefit from the power of compounding.

If you are looking forward to continuing investing till your retirement at the age of 60, then the total investment tenure could expand to 25 years.

Whether it's for higher education of children, an international vacation, or a dream home, the target of building a Rs 1 crore corpus is not difficult. Here’s how you can plan your investments.

For accumulating Rs 1 crore over an investment horizon of 15 years, you can spread the investments across three instruments: public provident fund (PPF), mutual funds and gold.

While mutual funds and gold have the ability to give higher returns, PPF is a guaranteed return scheme and safeguards wealth from tax cuts, making it an ideal investment option.

Historically, gold has given an average annual return of 10%. Meanwhile, mutual funds have the potential for at least 12% returns annually, past trends have shown. For PPF, the government currently offers 7.1% return annually. 

Target: Rs 50 lakh

Expected return: 12% p.a.

Investment per month: Rs 10,500

Total investment value: Rs 18.9 lakh

Estimated return: Rs 31 lakh

Total corpus: Rs 47.97 lakh

Target: Rs 25 lakh

Return: 7.1% p.a.

Monthly investment: Rs 8,000

Total investment value: Rs 14.40 lakh

Estimated return: Rs 10.84 lakh

Final corpus: Rs 25.24 lakh

Target: Rs 25 lakh

Investment per month: Rs 10,700

Total investment: Rs 12.84 lakh

Estimated return: Rs 12,02,028

Final corpus: Rs 24,86,028

Hence, with an investment of roughly Rs 46 lakh, you can create a corpus of nearly Rs 1 crore in 15 years. It is to be noted that by just increasing the investment in mutual funds by 10% every year, in line with the rise in your income, known as step-up SIP, the total corpus achieved would be way above Rs 1 crore.

You can also increase their investment horizon to 20 years and reach the same corpus target with lesser contributions, as longer investments benefit from the power of compounding.

Overall, the preferred asset mix, investment duration and other aspects depend on the investor’s risk appetite and ability to stay committed to their financial goal.