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5 Lakh to 1 crore in 10 years
“I want to get to a crore in 10 years – but I only have 5 lakhs to start!”
Bro, Let’s
get real!
“Rs. 5 Lakh will have a tough time becoming Rs. 1 Crore in 10 years. Even
If you invest in equity mutual funds….because realistically they grow your
money by 14%-16% annually. Anything more is not something you
should plan for.
“So you are saying it’s impossible!”
“Hah…Nope….You can reach a crore….
if you can save an additional
Rs. 20,000 each month”
Wait for it…..
there’s more to do!
Second year till
the 10th year
• Increase your SIP
amount by 15% to Rs.
23000in the second
year. Keep investing
the amount in equity
mutual funds.
• Repeat this 15%
increase in SIP amount
every year for the next
8 years.
Yay! You are
there!
• At the end of 10 years,
you should have Rs.
1.05 Crore
• Your 10th year SIP
amount would be about
Rs. 70,000
All this will happen
assuming….
• Equity mutual fund give you
14%-16% returns over the long
term (7 years and beyond).
• You don’t stop your SIP or
withdraw from it before 10 years
are up.
• You keep increasing your SIP
amount by 15% every year.
Now it’s time
to get started!!

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5 Lakh to 1 Crore in 10 years

  • 1. 5 Lakh to 1 crore in 10 years
  • 2. “I want to get to a crore in 10 years – but I only have 5 lakhs to start!”
  • 3. Bro, Let’s get real! “Rs. 5 Lakh will have a tough time becoming Rs. 1 Crore in 10 years. Even If you invest in equity mutual funds….because realistically they grow your money by 14%-16% annually. Anything more is not something you should plan for.
  • 4. “So you are saying it’s impossible!”
  • 5. “Hah…Nope….You can reach a crore…. if you can save an additional Rs. 20,000 each month”
  • 7. Second year till the 10th year • Increase your SIP amount by 15% to Rs. 23000in the second year. Keep investing the amount in equity mutual funds. • Repeat this 15% increase in SIP amount every year for the next 8 years.
  • 8. Yay! You are there! • At the end of 10 years, you should have Rs. 1.05 Crore • Your 10th year SIP amount would be about Rs. 70,000
  • 9. All this will happen assuming…. • Equity mutual fund give you 14%-16% returns over the long term (7 years and beyond). • You don’t stop your SIP or withdraw from it before 10 years are up. • You keep increasing your SIP amount by 15% every year.
  • 10. Now it’s time to get started!!

Editor's Notes

  1. Q: My financial goal is to reach Rs 1 Crore in 10 years and I am planning to do this by investing an initial amount of Rs 5 Lakh through mutual funds. With India booming and great scope for foreign investments ahead in the coming years, I would expect average annual returns of 25% or more in mutual funds. Can I achieve my target with financial planning? If not, please let me know the capital amount needed to achieve my target considering the current economic scenario and performance of the index.