SIP Calculation: How Much Should You Invest Monthly To Become Crorepati In 10 Years?

Becoming a crorepati is a dream for many Indians. It is a significant milestone, reflecting stability and financial security and many people work steadily toward it as part of their retirement goals.

While consistent saving and investment over time can help achieve this dream, it may also be possible to reach this goal sooner than expected. For this, investors may need to adopt more aggressive tactics such as higher-risk but higher-return investments. They will need to focus on leveraging compounding and diversifying portfolios, which can potentially help achieve this ambitious target within 10 years. 

A 10-year-investment outlook is considered a fair period for high-risk investments as it can help spread the impact of volatility. Investors benefit from the potential of compounding returns and get time to recover from short-term losses.

Choosing the right investment plays a key role when considering ambitious targets such as Rs 1 crore corpus. High-return mutual funds and gold are among such options, which have significantly rewarded investors with their returns. 

For such ambitious targets, ‘step-up’ technique plays a very crucial role in the investment journey. It is a strategy where investors gradually increase their investment amounts over time. Typically, investors align the step-up strategy with their income growth. This allows them to steadily increase them over time without stressing their finances.

Rs 1 crore corpus via mutual funds:

• Monthly amount: Rs 30,000

• Step Up % (annual): 10%

• Investment duration: 10 years

• Expected rate of return: 12%

• Invested amount: Rs 57,37,472

• Estimated returns: Rs 43,85,505

• Total value: Rs 1,01,22,978

Rs 1 crore corpus via gold:

• Monthly amount: Rs 33,000

• Step Up % (annual): 10%

• Investment duration: 10 years

• Expected rate of return: 10%

• Invested amount: Rs 63,11,220

• Estimated returns:: Rs 37,40,091

• Total value: Rs 1,00,51,311

As seen, mutual funds have the potential for generating higher returns, but investors should note that these returns are not guaranteed. Both gold and mutual funds outperformed each other in certain economic cycles, depending on factors like geopolitical environment, economic growth, etc.

As a result, investors are advised to thoroughly understand the risks of their investment journey. For best outcome, they can consider talking to a financial expert.