Rs 2,000 Weekly Investment: Can It Make You A Crorepati?

Who doesn’t want to be a crorepati? It’s a dream for many in the middle-class income group who look for ways to grow their money. But taking out a large portion of your salary for investments isn't always easy.

Did you know that by just investing Rs 2,000 every week, you can aim to become a millionaire? That's Rs 8,000 per month, and over time, this modest saving can grow into a substantial corpus. You just need to remain consistent in investments and follow a few simple ways for smart money management.

Choosing the right investment instrument is crucial to building a corpus of Rs 1 crore with a modest investment of Rs 8,000 every month. Mutual fund systematic investment plans (SIPs) could be a suitable choice as they offer enormous flexibility and higher returns, compared to traditional savings instruments.

Assuming an annualised return of 12%, let’s see how a weekly investment of Rs 2,000 will grow over the years into Rs 1 crore.  

Monthly Investment: Rs 8,000 (Rs 2,000 weekly)

Investment duration: 22 years

Expected rate of return: 12%

Invested amount: Rs 21,12,000

Estimated returns: Rs 82,55,167

Total value: Rs 1,03,67,167

As seen from the above calculation, an investment of Rs 8,000 per month in an SIP at an assumed return rate of 12% per annum can help you achieve the Rs 1 crore target in 22 years. However, consistent investment of Rs 8,000 every month for such a long tenure could be difficult due to multiple factors. You can also realise your crorepati goal with the same amount in a shorter duration.

This is where a Step-Up SIP can help. Mutual funds through step-up SIP allow increasing your investments at a fixed percentage regularly, typically annually. Let’s see how a step-up SIP at 10% annual increment can help you reach the Rs 1 crore goal faster:

Monthly Investment: Rs 8,000 (Rs 2,000 weekly)

Investment duration: 18 years

Expected rate of return: 12% per annum

Step up: 10% per annum

Invested amount: Rs 53,51,972

Estimated returns: Rs 58,22,472

Total value: Rs 1,11,74,445

So, with a step-up feature by increasing your investments by 10% per annum, you can easily reach the Rs 1 crore target in a shorter duration of 18 years.

Achieving the goal of building a corpus of Rs 1 crore is not difficult, even with modest investments. However, it’s important to note that the SIP investments are prone to market risks and returns are not guaranteed. It’s advisable to evaluate all key factors before investing.