For many professionals in India, reaching the 'crorepati' milestone seems intimidating, especially when the salary is not yet substantial. At the age of 35, many professionals find themselves at a crucial financial crossroads. However, even starting in the mid-30s with an annual income in the range of Rs 6–12 lakh can help build a sizeable corpus.
With discipline, patience, and the right investment strategy, one can attain the Rs 1-crore target. The key here lies in harnessing the power of compounding via Systematic Investment Plans (SIPs). By making a fixed monthly investment in equity mutual funds, people can see their hard-earned money grow steadily over a period of time, riding out market volatility and benefiting from long-term returns.
The best part here is that, unlike lump-sum investments, SIPs allow you to build wealth gradually and align perfectly with salaried individuals preferring consistency.
How To Become A Crorepati By 50?
Even after starting at the age of 35 and earning between Rs 6–12 lakh annually, investors remain in a strong position to reach the Rs 1 crore target by the time they reach the age of 50. This is possible through systematic investing — by putting money into a mutual fund SIP regularly and letting compounding do the heavy lifting.
By 50, the investors have a 15-year horizon, which is considered long enough for equity mutual funds to deliver meaningful growth.
Also Read | Rs 10 Crore In 30 Years? Here's The Monthly SIP You Need To Start With
Assuming that a 35-year-od starts investing in mutual fund SIPs at an estimated return of 12% per annum for 15 years, here's what the total investment would look like by the time they reach the age of 50:
1. SIP amount: Rs 20,000
Investment duration: 15 years
Expected rate of return: 12%
Invested amount: Rs 36,00,000
Estimated returns: Rs 64,91,520
Total value: Rs 1,00,91,520
Also Read | Investing A Rs 10-Lakh Inheritance: SIP, FD Or Stocks — What Maximises Returns?
2. SIP amount: Rs 25,000
Investment duration: 15 years
Expected rate of return: 12%
Invested amount: Rs 45,00,000
Estimated returns: Rs 81,14,400
Total value: Rs 1,26,14,400
3. SIP amount: Rs 30,000
Investment duration: 15 years
Expected rate of return: 12%
Invested amount: Rs 54,00,000
Estimated returns: Rs 97,37,280
Total value: Rs 1,51,37,280
This shows how even modest monthly contributions can accumulate into a substantial corpus within 15 years. However, it is important to stay invested and resist the temptation to withdraw prematurely.
With a steady SIP of Rs 20,000–Rs 30,000, investors can easily cross the Rs 1 crore target in 15 years. To stay on track, they can even go with step-up SIPs and increase their SIP amount by 10% annually as their income grows.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.