How To Multiply Your Savings To Reach Rs 1 Crore In 15 Years

Just saving money is not enough. Wealth accumulation is a consistent process and it requires smart investment decisions to multiply returns despite the challenges like market volatility and inflation. A diversified investment strategy involving high-return instruments could accelerate the wealth accumulation process.

A long-term strategy and consistency help in gaining from the power of compounding. The longer the investment horizon, the greater the impact of compounding on wealth creation. Today, there are many investment options available, including equities, mutual funds, fixed deposits and government schemes. Each offers different risk and return profiles. 

For a long-term investment horizon of 15 years, it is best to use a mix of these investment instruments to maximise returns from diversification and the power of compounding.

It might sound difficult, but a modest monthly investment of just over Rs 20,000 can help one become a crorepati in 15 years.

1. Let’s see how much we need to invest in mutual funds over 15 years to generate a Rs 50 lakh corpus.

Target: Rs 50 lakh

SIP amount: Rs 12,000 per month

Investment duration: 15 years

Expected rate of return: 12%

Invested amount: Rs 21,60,000

Estimated returns: Rs 38,94,911

Total value: Rs 60,54,911

2. You can also choose to invest in traditional assets like public provident fund (PPF), which offers guaranteed returns. PPF is a government-backed scheme and currently offers 7.1% annual returns.

Investment: Rs 6,000 per month

Time: 15 years

Interest Rate: 7.1%

Total investment: Rs 10,80,000

Interest Earned: Rs 8,13,408

Maturity Amount: Rs 18,93,408

3. Gold is known to have generated around 10% returns annually, based on its historical trends. While the precious metal does not guarantee returns, it is considered safer than mutual funds and is a popular option for investors looking for secure returns.

Monthly amount: Rs 5,000

Investment duration: 15 years

Expected rate of return: 10%

Invested amount: Rs 9,00,000

Estimated returns: Rs 11,89,621

Total value: Rs 20,89,621

As seen, a monthly investment of around Rs 23,000 can result in a Rs 1 crore corpus in 15 years. Investors can choose to allocate into different assets based on their risk appetite, as some have potential for higher returns. However, a diversified portfolio helps shield the investment from market volatility and sector-specific risks.

It is also recommended to discuss your goals with a certified expert who can help in building an effective financial strategy to achieve your crorepati goal.