Many people dream of becoming a crorepati in India. At the same time, it feels out of reach for most salaried individuals without an inheritance or a side hustle. But one can harness the power of compounding by investing in different instruments to achieve this target.
In practical terms, you become a crorepati when your net worth is at least Rs 1 crore. This can be through mutual funds, EPF, PPF, stocks, FDs, property and cash combined. For a salaried Indian with no side income, this target is usually hit through long-term monthly investing, not one big jackpot event.
For example, let us assume you invest in mutual funds and PPF for 15 years. The calculations would look as follows:
Investing In Mutual Fund SIPs:
Monthly investment needed: Rs 15,000
Tenure: 15 years
Total investment: Rs 27 lakh
Expected returns: 12%
Estimated returns: Rs 44.39 lakh
Maturity corpus: Rs 71.39 lakh
Investing In PPFs:
Monthly investment needed: Rs 11,000
Tenure: 15 years
Total investment: Rs 19.8 lakh
Expected returns: 7.1%
Estimated returns: Rs 14.91 lakh
Maturity corpus: Rs 34.71 lakh
Similarly, you can also invest in other instruments like gold.
To build your wealth, you must also focus on savings. In Indian metros where rents and EMIs are high, saving a good amount may need conscious choices such as sharing accommodation, using public transport, avoiding frequent debt-fuelled upgrades and keeping big-ticket expenses like weddings and gadgets within limits.
Becoming a crorepati with zero side income is not about earning more: it is about the gap between income and lifestyle, and letting compound interest do the rest.
As your savings and earnings increase, you can choose to invest a greater amount in SIPs, PPF and other instruments. Compounding means your returns start earning returns of their own, so the later years add much more to your corpus than the early years.
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