Wealth accumulation is a long-term process that requires financial discipline and smart money management. The key to success is starting early and maintaining a long investment horizon. You can build a large corpus even with modest investments over the years due to the power of compounding.
Delaying one's investment journey curtails the total tenure, reducing the potential for reinvested earnings to generate additional returns. A delay of even a few years can significantly affect long term investment outcomes.
If you're 27 years old and dreaming of building a Rs 1-crore corpus, you're in an excellent position. At this age, time is firmly on your side: the magic of compounding can work wonders over the next few decades.
Many young professionals in India start thinking about wealth creation around this time, whether for retirement, buying a dream home, children's education, or financial freedom.
At 27 years, assuming a typical retirement age of around 60, you have roughly 33 years of investment horizon and this allows even modest monthly investments to grow substantially through compounding.
By investing in mutual fund Systematic Investment Plans (SIP), it is possible to build a Rs 1-crore corpus in a long-term tenure of more than three decades. An SIP allows you to invest a fixed amount in mutual funds at regular intervals, usually every month.
The longer your money stays invested, the more it grows. You buy more units when markets fall and fewer when they rise, which helps in minimising risks due to the rupee-cost averaging.
Here are some calculations, which show how long it takes to hit the Rs 1-crore target, depending on different monthly SIPs when you start your investment journey at the age of 27. As per industry trends, equity SIPs have offered around 10-14% returns per annum. Here we assume an interest rate of 12% per annum.
Also Read: Start With Rs 10,000 A Month: Can You Still Build Rs 5 Crore By Retirement?
Investing Rs 3,000 Per Month In Mutual Fund SIPs:
Monthly investment: Rs 3,000
Tenure: 31 years
Total investment: Rs 11.16 lakh
Expected rate of returns: 12%
Estimated returns: Rs 92.74 lakh
Maturity corpus: Rs 1.04 crore
Investing Rs 6,000 Per Month In Mutual Fund SIPs:
Monthly investment: Rs 6,000
Tenure: 25 years
Total investment: Rs 18 lakh
Expected rate of returns: 12%
Estimated returns: Rs 84.13 lakh
Maturity corpus: Rs 1.02 crore
Investing Rs 10,000 Per Month In Mutual Fund SIPs:
Monthly investment: Rs 10,000
Tenure: 21 years
Total investment: Rs 25.2 lakh
Expected rate of returns: 12%
Estimated returns: Rs 79.1 lakh
Maturity corpus: Rs 1.04 crore
The above calculations illustrate that a higher monthly SIP can reduce the duration required to achieve the Rs 1-crore corpus.
Your salary at the age of 27 will not be the same at 37. A smart strategy is to increase your SIP by 5–10% every year through the step-up option provided by many mutual fund schemes. It will help you reach your goal faster.
Starting an SIP at 27 years is one of the smartest financial moves you can make. With discipline, even a modest monthly investment of Rs 5,000–8,000 in quality equity funds can realistically reach (or exceed) the Rs 1-crore target by retirement.
Also Read: Earning Rs 6-12 Lakh At 35? Here's Your SIP Roadmap To Become A Crorepati By 50
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