How To Build A Rs 20 Lakh Corpus By Investing Rs 200 A Day

It’s not necessary to invest a big amount at one go to build a sizable corpus. Wealth accumulation requires financial discipline and consistency. You can build a sizable corpus even with small investments over a longer tenure. Mutual fund schemes are offering more flexibility compared to other instruments through systematic investment plans (SIP). You can even save a small amount daily to build your intended corpus.    

With long-term commitment, even daily investments can support major financial goals. A small contribution of Rs 200 per day can also accumulate into lakhs over a long-term horizon with consistency and financial discipline.  

To maximise the benefits of compounding, a long-term growth outlook is essential. Mutual fund investments have become popular investment options in India for building a substantial corpus over time. Though SIPs are prone to market risks, they offer higher returns compared to other instruments.   

Target: Rs 20 lakh

Investment Amount: Rs 200 daily

Expected Return Rate: 12% per annum

Time Period: 12 years and 2 months

Invested Amount: Rs 8,90,600

Estimated Returns: Rs 11,31,055

Total Value: Rs 20,21,655

This shows that a modest contribution of around Rs 6,000 per month can lead to a substantial corpus of over Rs 20 lakh in 12 years.

For better results, investors may choose to increase their contribution value in alignment with the rise in their earnings. This technique, known as ‘step-up’, helps to boost the impact of the power of compounding. With just around 10% increase in contributions per annum, one can end up with a significantly larger corpus.

In any case, it is recommended to always consult with a financial expert for making significant financial commitments to avoid financial stress. They can help with understanding risk appetite and investment outlook, which can provide mental peace and a realistic picture of the investment journey.