Rs 30,000 Monthly For 10 Years — Is Rs 1 Crore Guaranteed?

Many aspire to become a crorepati in India, but it is highly unlikely that one can achieve this goal with a salaried income or even a side hustle or business. Instead, people typically invest in different assets to grow their wealth. In recent years, mutual funds have emerged as preferred investment instruments in India due to their ability to generate higher returns compared to traditional instruments.   

A popular method of investing in mutual funds is to invest via systematic investment plans (SIPs). Investors can invest a small amount regularly through SIPs to build a large corpus over the years. 

But if you want to become a crorepati in 10 years, how much would you need to invest? Would a monthly SIP of Rs 30,000 be enough?

We have tried to answer these questions with some calculations. Let’s see the investment scenario at an assumed interest rate of 12% per annum.

Monthly investment: Rs 30,000

Tenure: 10 years

Total investment: Rs 36 lakh

Expected rate of return: 12% per annum

Estimated returns: Rs 33.7 lakh

Maturity corpus: Rs 69.7 lakh

Investing In Mutual Fund SIPs At 15%:

Monthly investment: Rs 30,000

Tenure: 10 years

Total investment: Rs 36 lakh

Expected rate of return: 15%

Estimated returns: Rs 47.6 lakh

Maturity corpus: Rs 83.6 lakh

As seen from the above calculation, it’s not possible to reach the target of Rs 1 crore with a monthly SIP of Rs 30,000 in 10 years at an assumed interest rate of 12% per annum. Even at a higher interest rate of 15% per annum, it is difficult to reach a corpus of Rs 1 crore in 10 years with a monthly SIP of Rs 30,000.

To achieve your crorepati goal with a Rs 30,000 monthly SIP, you would have to either increase the investment horizon or raise the SIP amount. For example, if you increase the SIP amount to Rs 44,000 per month and the mutual fund offers returns of 12% per annum, then you can hit the Rs 1 crore mark in 10 years.

On the other hand, with a Rs 30,000 SIP, it would take you at least 13 years to achieve a corpus of Rs 1 crore, at an assumed interest rate of 12% per annum.

To conclude, building a Rs 1 crore corpus through SIPs is not a difficult task. The ambitious goal can be achieved with an investment plan and the selection of the right instruments.