For several Indians, becoming a crorepati is a key financial goal as it is tied to the idea of security, where money works for you, and job losses or unexpected setbacks don't leave you in the doldrums.
The fact is not everyone begins investing early. Many start investing after reaching 35. At this age, the situation may seem challenging, but it is far from hopeless. With a stable income and approximately 25 years until retirement at 60, there is still enough time to build substantial wealth through disciplined investing.
The key lies in systematically investing surplus income into assets that can generate returns higher than inflation over the long term. Rather than comparing oneself with those who started earlier, the focus should be on making the most of the time available. The day you start your journey and the longer your stay invested is when the power of compounding starts working for you.
The main question is how much SIP is needed to become a crorepati by the age of 60. Let us do the math:
How Much Should You Invest?
The later you begin, the more you need to invest per month. If you invest Rs 6,000 per month, this is what the return can look like at a return of 12% annualised returns:
- Monthly SIP: Rs 6,000 per month
- Time period: 25 years
- Interest rate: 12% per annum.
- Total investment value: Rs 18 lakh
- Estimated returns: Rs 95 lakh
- Final Corpus: Rs 1.13 crore
ALSO READ: Rs 10,000 Monthly SIP: How Much Wealth Can You Build in 20 Years
For those who can afford to invest more, doubling the SIP significantly boosts the final corpus:
- Monthly SIP: Rs 12,000 per month
- Time period: 25 years
- Interest rate: 12% per annum.
- Total investment value: Rs 36 lakh
- Estimated returns: Rs 1.89 crore
- Final Corpus: Rs 2.25 crore
ALSO READ: Rs 6,000 SIP: Can It Make You A Crorepati Before 50?
Even if you start at the age of 35 years, a Rs 6,000 SIP can help you become a crorepati by or before 60. Disciplined investing combined with time and compounding for at least 25 years is important. You must also incorporate annual step-ups, and earn reasonable equity returns of 12% or higher.
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