Building Rs 2 Crore In 10 Years: How Much Do You Need To Invest Monthly?

Amid the rising cost of living in today's modern world, building wealth remains a distant dream for many. In reality, it is very much achievable through the right financial discipline and planning.

Building a Rs 2 crore corpus over a period of 10 years may sound ambitious at first, yet it is entirely possible for those who understand the power of systematic investing.

There are multiple schemes offering attractive returns in the financial services market in India that continues to evolve rapidly. 

The key here lies in consistency. If you invest a fixed amount on a monthly basis through instruments like mutual fund SIPs, this will allow the money to grow steadily while benefiting from the power of compounding.

In a decade, even moderate returns can help people transform disciplined contributions into a substantial fortune. 

At first, you need to set your target value and duration. Here, the aim is to accumulate Rs 2 crore in 10 years. Having an idea of your goal helps in formulating a specific investment plan.

Financial experts advise calculating the estimated amount required to invest on a monthly basis to achieve the target. Depending upon your risk appetite, you can opt for a single scheme or go with multiple savings instruments.

Notably, the exact monthly investment required depends on several factors: expected returns, risk appetite, and market conditions. However, the principle remains the same - you need to begin early and stay committed. 

For instance, if you plan to accumulate Rs 2 crore in 10 years via mutual fund SIPs, then you would be required to invest around Rs 90,000 per month. Here's how your monthly investments will grow:

Monthly Investment: Rs 90,000

Estimated Return: 12% per annum

Tenure: 10 years

Invested Amount: Rs 1,08,00,000

Estimated Returns: Rs 1,01,10,517

Total Corpus: Rs 2,09,10,517

You can take the help of any online SIP calculator to find out the suitable amount as per your needs.

Experts suggest investing your hard-earned money in the right schemes. This means products that offer steady and higher returns in the long term. 

In this, equity mutual funds might be a suitable choice as they offer higher returns over traditional instruments like Fixed Deposits (FDs). But these are linked to market risks. 

Also, people should diversify their investments as it ensures risk spreading across multiple asset classes. You can consider investing in large-cap, mid-cap and small-cap funds to diversify your investment. 

Continue to monitor your investment at regular intervals to make sure that they move in the right direction to help you meet your goals. Make modifications when required, keeping in mind the latest performance of the market.

If you have any doubts, it is better to seek guidance from a certified financial planner to get a more precise and customised investment portfolio.