How To Build Rs 50 Lakh Corpus In 5 Years: Investment Strategies to Maximise Returns
Diversified investments are key to financial security, but experts say completely replacing safe, but low-yield tools like FDs with high-return investments may not be the right strategy for everyone
Building a corpus of Rs 50 lakh in 5 years can be challenging due to the shorter investment horizon and associated risks. However, strategic planning, adequate portfolio diversification, and disciplined investing can improve the chances of achieving this target.
Experts also emphasise that diversified investments are key to sustainable financial security. This means that completely replacing safe, but low-yield tools like fixed deposits (FDs) with higher-return investments may not be suitable for everyone. However, even investors who utilise multiple financial savings tools must understand that diversification alone does not guarantee results. It is crucial to determine the right portfolio allocation strategy to ensure stability during uncertain times.
One might assume that a diversified investment mix of gold, equities, and fixed deposits (FDs) could help build a corpus of Rs 50 lakh. However, since some investment instruments carry higher risk and lack guaranteed returns, active risk management is essential.
For instance, while FDs provide capital safety and assured returns, they typically yield lower returns compared to market-linked investments. Gold, often considered a safe-haven asset, has historically delivered better average returns than FDs and, at times, has even outperformed benchmark indices. However, gold prices are subject to market fluctuations and do not offer guaranteed returns.
Equities, while being the most volatile among the three, have historically provided the highest long-term returns, making them a crucial component for wealth creation. A well-balanced investment strategy should account for risk tolerance, financial goals, and market conditions to optimise returns while ensuring stability.
Typically, for a 5-year duration, it is recommended to opt for debt mutual funds instead of equity focused funds. Debt funds invest in fixed-income securities like government and corporate bonds, and are said to have lower risk compared to equities. However, given our target is Rs 50 lakh, debt funds might not be able to do it alone, but can contribute towards diversification.
3-Part Plan To Build Rs 50 Lakh Corpus In 5 Years:
1. Gold: In 2024, the popular yellow metal provided a whopping 26% returns due to a rise in demand amid geopolitical tensions. In 2025, gold’s year-to-date return stands at approximately 14.1%. Historically, gold has been a safe investment option, offering stable returns. Between 1995 and 2024, the yellow metal has offered an average annual return of about 10%, making it more attractive than FDs.
The gold return calculator on Good Returns website shows that a monthly investment of Rs 10,000 in gold in 2020 would have yielded Rs 9.5 lakh in Feb. 2025. The outcome is based on the gold price trends in the past 5 years. Here, the investment value is roughly Rs 6 lakh, indicating a 58.7% profit over 5 years.
2. Debt mutual funds: Within this investment category, many options cater to specific financial goals. Debt mutual funds, which are relatively safer than equities-focused funds, can offer 10-13% annual returns over a 5-year period, as seen in historical trends.
Assuming that a debt fund provided a 12% return rate annually, a Rs 25,000 monthly investment in it would yield Rs 20,27,590 value in 5 years. Here, the investment amount stands at Rs 15,00,000.
3. Equities mutual funds: These are riskier, but can offer attractive returns if the investment horizon is more than 5 years. For instance, if a good large cap fund has offered 15% annualised returns in the last three years, a monthly investment of Rs 23,000 would get us the desired result. The final corpus at the end of 5 years would be Rs 20,08,868, with an investment value of about Rs 13.8 lakh.
The total investment stands at about Rs 34.8 lakh over 5 years, which is about Rs 60,000 per month. To be clear, the suggested calculations are based on the historical performance of the said funds and may not behave similarly in the future.
Gold Investment Calculation
Monthly Investment: Rs 10,000
Investment Duration: 5 years
Assumed Annual Return: 10% (historical average return)
Total Investment: Rs 10,000 x 12 months x 5 years = Rs 6,00,000
Estimated Corpus: Rs 9.5 lakh
Debt Mutual Funds Calculation
Monthly Investment: Rs 25,000
Investment Duration: 5 years
Assumed Annual Return: 12%
Total Investment: Rs 25,000 x 12 months x 5 years = Rs 15,00,000
Estimated Corpus: Rs 20,27,590
Equity Mutual Funds Calculation
Monthly Investment: Rs 23,000
Investment Duration: 5 years
Assumed Annual Return: 15%
Total Investment: Rs 23,000 x 12 months x 5 years = Rs 13,80,000
Estimated Corpus: Rs 20,08,868
