Kaun Banega Crorepati: Earn Rs 35,000 A month? Here's How You Can Make Rs 1 Crore

Becoming a ‘crorepati’ is a dream for millions of Indians. While it may seem like a distant goal, smart financial planning can make it a reality. The popular television game show, Kaun Banega Crorepati, also offers an opportunity to the contestants to realise their dream of securing Rs 1 crore.  The latest season of the show, hosted by Amitabh Bachchan, started on Sony Entertainment Television on Aug. 11. Even if you fail to make it to the hot seat on the popular show, you can still become a crorepati.

Be it equity shares or gold, disciplined saving across various assets and patience can help you achieve your Rs 1-crore corpus fund in just a little over a decade. You can achieve this goal due to the power of compounding with financial discipline and consistent investment.

It may seem a daunting task initially, but you can build a corpus worth Rs 1 crore even with a modest salary of Rs 35,000 per month.

For this goal, let’s divide the contribution into three assets: gold, the stock market and fixed deposits or schemes like public provident funds (PPF).  

Mutual Fund Investments

Monthly SIP: Rs 20,000

Time period: 12 years

Expected return: 12% per annum

Invested amount: Rs 28,80,000

Estimated returns: Rs 35,65,043

Total value: Rs 64,45,043

Gold Investment

Monthly: Rs 10,000

Time period: 12 years

Expected return: 10% per annum

Invested amount: Rs 14,40,000

Estimated returns: Rs 13,47,415

Total value: Rs 27,87,415

Public Provident Fund

Monthly: Rs 5,000

Time period: 15 years

Expected return: 7.1%

Invested amount: Rs 9,00,000

Estimated returns: Rs 7,08,120

Total value: Rs 16,08,120

After considering the estimated returns in mutual funds and gold, there is a need for an additional Rs 7.6 lakh. Staying invested in PPF for 15 years can generate over Rs 16 lakh, more than double the required value to achieve your Rs 1 crore goal.  

The required amount of Rs 7.6 lakh to reach Rs 1 crore gets accumulated in your PPF account in the 9th year itself. However, you will be able to unlock this money only after 15 years. The interesting thing is that with just three additional years of investment compared to mutual funds and gold, you can secure an additional amount of over Rs 8 lakh above your Rs 1 crore goal. This can help you offset the impact of your capital gains taxes.

Alternatively, you can also choose fixed deposits as an option, which come with lower returns. However, FD returns are taxable, unlike the PPF investments. In any case, it’s advisable to consult a financial expert to discuss your investment plan before choosing the assets.