Crorepati Calculation: How Long Does It Take To Build Rs 1 Crore With Rs 25,000 Monthly Investment?
Since the investment horizon needs to be long-term for this goal, you may either choose equity investments or a mix of assets.
For many Indians, becoming a crorepati represents both financial security and the freedom to retire early. A Rs 1‑crore corpus is seen as a significant milestone on the path to long-term wealth creation and retirement planning.
While it may seem like a distant goal, building this nest egg is possible if you adopt disciplined savings habits early on. By saving just Rs 25,000 per month and investing it smartly, you can accumulate this corpus value in 15 years. Steady investments, coupled with the power of compounding, will help your money grow over time, leading to a substantial sum.
Since the investment horizon needs to be long-term for this goal, you may either choose equity investments or a mix of assets. Equity investments will help you reach the goal faster, but an asset mix will take a little more time and offer stability too.
A mix of equities, gold and public provident fund (PPF) will provide a balance to the portfolio. Let us try to achieve a Rs 50-lakh goal with SIPs and the remaining with gold and PPF. For this, you may allocate 50% of the investment to SIPs and an equal portion toward gold and PPF. It is important to note that the PPF scheme comes with a 15-year lock-in period.
Investment distribution
SIP: Rs 12,500
Gold: Rs 6,250
PPF: Rs 6,250
Here’s how the investment could grow:
Mutual Funds:
Goal: Rs 50 lakh
Monthly SIP: Rs 12,500
Expected return: 12%
Invested amount: Rs 21,00,000
Time: 14 years
Estimated returns: Rs 33,55,224
Total value: Rs 54,55,224
Gold:
Goal: Rs 25 lakh
Monthly investment: Rs 6,250
Returns: 10% p.a. (historical data)
Time: 15 years
Invested amount: Rs 11,25,000
Estimated returns: Rs 14,87,026
Total value: Rs 26,12,026
PPF:
Goal: Rs 25 lakh
Monthly investment: Rs 6,250
Returns: 7.1% (guaranteed)
Time: 15 years
Invested amount: Rs 10,80,000
Interest Earned: Rs 8,72,740
Maturity Value: Rs 19,52,740
As seen above, a total investment of more than Rs 43 lakh spread over 14 to 15 years can generate a corpus worth over Rs 1 crore. These estimates show that it's possible to create a Rs 1 crore corpus over a period of 15 years.
The asset allocation should be based on your financial needs and risk appetite. However, it is advisable to consult a financial expert before making any significant commitments to avoid any stress.
