Crorepati Dream: How Much Should You Invest To Accumulate Rs 1 Crore In 15 Years?
For an investment horizon of 15 years, mutual fund SIPs could be one of the most suitable long-term investment options.
Becoming a crorepati in 15 years is possible with smart planning and disciplined investing. A mix of assets can help you reach the Rs 1 crore goal.
The key is to start as early as possible and stay committed to your investments over a long-term horizon. For an investment horizon of 15 years, mutual fund systematic investment plans (SIPs) could be one of the most suitable long-term investment options. It has potential for higher returns and the longer tenures help to spread the risks.
This year, gold has once again proven why it is considered a safe-haven asset. The precious metal has delivered a nearly 50% return, outperforming the Nifty and traditional investments. Investing in gold will also help to add stability and act as a hedge.
Additionally, secure investment instruments like the public provident fund (PPF) provide guaranteed returns. It is backed by the government and comes with tax benefits on investment as well as maturity value, making it an ideal diversification tool for one’s portfolio.
For building a corpus of Rs 1 crore over 15 years, let’s assume that SIPs can give 12% return per annum, while gold can offer around 10% annual returns, based on historical trends. At present, PPF offers an annual interest rate of 7.1%. You can also explore the step-up SIP option to accelerate your investment journey towards the Rs 1 crore goal. Step-up SIP schemes allow increasing the amount by a certain percentage every year.
Let’s see how your investments across SIP, gold and PPF would grow in 15 years:
Mutual Fund Investments
Target: Rs 60 lakh
Time period: 15 years
Monthly amount: Rs 7,000
Step-Up % (annual): 10%
Expected return: 12%
Invested amount: Rs 26,68,888
Estimated returns: Rs 34,09,806
Total value: Rs 60,78,694
Gold Investment
Monthly investment: Rs 5,000
Investment duration: 15 years
Expected rate of return: 10%
Invested amount: Rs 9,00,000
Estimated returns: Rs 11,89,621
Total value: Rs 20,89,621
PPF Investment
Time period: 15 years
Monthly investment: Rs 6,500
Total investment: Rs 11,70,000
Interest rate: 7.1%
Interest earned: Rs 8,81,192
Maturity amount: Rs 20,51,192
With a monthly investment of Rs 18,500, you can achieve the Rs 1-crore corpus goal in 15 years. It’s advisable to increase your investments along with a rise in your income every year. This indicates that one can achieve higher corpus targets even with lower investment amounts by staying consistent. To be clear, these returns are estimated and not guaranteed. It is recommended to consult a financial expert before making any significant investment.
