How Much Do You Need To Invest Monthly To Retire With Rs 10 Crore?
You can invest in instruments such as mutual funds, gold and PPF to achieve your goals.
Many Indians dream of a Rs 10-crore retirement corpus. That sum of money represents a life where you are financially self-sufficient, free from money worries, and can truly enjoy your golden years. It has become the new aspirational retirement corpus for many upper-middle-class and high-net-worth individuals, especially in metro cities.
But how does one get there? The answer lies in the disciplined power of investing. Suitable investment options for reaching a corpus of Rs 1 crore include mutual funds, gold, PPF, FDs and the stock market. Ideally, one should diversify one’s investments to minimise risk and ensure stable returns.
Below, we have illustrated how a corpus of Rs 10 crore can be achieved by investing in PPF and mutual funds. We will assume a time span of 35 years until retirement.
Investing In Mutual Fund SIPs
Monthly investment needed: Rs 15,000
Tenure: 35 years
Total investment: Rs 63 lakh
Expected returns: 12%
Estimated returns: Rs 7.64 crore
Maturity corpus: Rs 8.27 crore
Investing In PPF
Monthly investment needed: Rs 12,000
Tenure: 35 years
Total investment: Rs 50.4 lakh
Expected returns: 7.1%
Estimated returns: Rs 1.61 crore
Maturity corpus: Rs 2.11 crore
The rate of returns from such investments can vary with time.
Time is one of the biggest factors when it comes to achieving a corpus of Rs 10 crore. The earlier you start, the lower the amount you need to invest to achieve the target.
Consider a mix of well-performing Large-Cap, Flexi-Cap, and a small exposure to Mid/Small-Cap funds based on your risk appetite. Do not stop or pause your SIPs during market downturns; this is when you acquire more units cheaply (a concept called Rupee cost averaging).
Your monthly investment to achieve Rs 10 crore by retirement greatly depends on the age you start investing and the returns you expect. Starting early and maintaining consistent investments is crucial to meet this goal in the Indian financial context.
