How To Build Rs 1 Crore Corpus In Five Years? Here’s Your Investment Roadmap

The recent surge in stock market investments and decline in bank deposits in India signals a behavioural shift among investors, who are increasingly turning to alternative schemes in search of higher returns in a shorter time frame. The investors are also exploring more secure investment options due to the recent downturn seen in the Indian stock markets, triggered by a series of global as well as domestic factors.

The investors, with a high-risk appetite, often turn to stocks and other equity assets for higher returns compared to traditional savings. However, with the recent stock market turmoil, the investors are exploring safe-haven instruments like fixed deposits, gold, and debt instruments, among others.

While financial experts advise against putting all eggs in one basket and suggest a diversified investment strategy including cash, gold, FDs, government-backed schemes, and stocks, the investor preference may vary depending on the financial goals and risk appetite. Many investors are still willing to take higher risks in hopes of making quick gains. However, building wealth is a steady journey instead of a short-term effort. And that brings us to the elephant in the room: Is it possible to make a Rs 1 crore corpus in five years?

Turns out, it might be. For those willing to take higher risks, with no near-term needs and a long-term investment perspective, the following option could be considered:

One of the popular investment rules involves systematic investment plans, or SIPs, which have gained a lot of traction in India lately. The common 15-15-15 rule suggests that an investor who opts for an SIP (Systematic Investment Plan) of Rs 15,000 per month for 15 years, assuming a 15% return, is likely to achieve a Rs 1 crore corpus.

To build a Rs 1 crore corpus in five years, this similar rule would need to be tweaked with a monthly SIP amount of Rs 1,15,000. However, to achieve a corpus value of Rs 5 crore in five years, the SIP amount would need to be significantly increased to Rs 6,87,000 per month.

Other investment opportunities include real estate investments at strategic locations or investing in new-age options such as cryptocurrencies. For instance, the popular crypto asset Bitcoin, which traded for $0.1 around 2010-12, today has a value of nearly $83,000.

While this can seem an unrealistic goal, it is important to understand that wealth creation is achieved through discipline in financial management and rarely through luck. It is important to consider your risk appetite and financial dependencies, as taking significant financial risks without proper planning can have serious consequences.