How much to invest monthly to create a corpus of Rs 2 crore in 10 years (2024)

FAQs

How much to invest monthly to create a corpus of Rs 2 crore in 10 years? ›

A Certified Financial Planner would suggest that to achieve Rs. 2 crore, you should consider a monthly SIP of around Rs. 85,000 to Rs. 1 lakh, depending on the exact returns. This might seem high, but it's aligned with your goal. Avoiding Index Funds: Index funds may not give you the required returns.

If we assume 12% market returns on your investment, the lump sum of Rs 10 lakh and SIP of Rs 35,000 will help build a corpus of close to Rs 1.09 crore in 10 years. To reach your target of Rs 2 crore in 10 years, you'll need to increase the monthly SIP by Rs 40,000, taking it to Rs 75,000.

Step 3: Calculate the Required Monthly SIP Amount

For example, at the annual return of 11%, to save ₹1 crore rupees in 10 years, an individual would require approximately Rs. Rs. 45,665 per month or should start a SIP of Rs. 37,924 per month and increase this by 5% every year.

How to accumulate a Rs 10 crore corpus in 10 years? Assuming an expected return rate of 12 per cent per year, an investor would need to invest Rs 4.34 lakh per month in equity funds through SIP to create a corpus of over Rs 10 crore in 10 years.

At an expected annual return of 12%, an investor would need to invest approximately Rs 10,880 per month to reach the Rs 1 crore target. As per the ET report, financial advisors emphasize the importance of disciplined investing and choosing the right mix of assets to maximize returns.

The answer will depend on your expense pattern. If your monthly expense is ₹25,000 post-retirement, having 1 crore can be sufficient. But, if you plan on having additional expenses, you must build a larger corpus.

If we assume that as 30 years, you will need a corpus of close to ₹3.20 crore to take care of your monthly expenses after retirement. You will need an additional ₹24 lakh for your annual post-retirement travel plan for seven years. Hence, you can consider a goal amount of ₹3.5 crore for your retirement.

Moreover the returns will depend upon the fund manager and fund house you are investing into. 12% returns will make your 30k per month investment of total 18 Lacs into sum of 24.78 Lacs Rs at the end of 5 years.

An investor may generate at least 48 lakhs by investing 20,000 per month for 10 years. If one sees and analyses the returns on investment under SIP schemes, one may examine how they can build a corpus by investing 20,000 per month for 10 years under SIP schemes.

An example of how SIP calculator works

You expect a return of 12% per year from equity investment. In this case, the total corpus that you will accumulate after 10 years is Rs 23.23 lakhs. If, however, you increase investment to Rs 15000 every month, you will accumulate Rs 34.85 lakhs.

What is the 70 20 10 rule in SIP? ›

What is the 70:20:10 rule in SIP investing? The 70:20:10 rule is an investment strategy where 70% of your portfolio is allocated to low-risk investments, 20% to medium-risk investments, and 10% to high-risk investments, helping manage market fluctuations and ensuring balanced growth.

If we assume a life expectancy of up to 85, then you will have to plan for 33-35 years. We hope you have factored this into the ₹10 Cr corpus that you want to build for your retirement.

He classified people with Rs 1 crore of liquid net worth in the “rich” category, while a High Net Worth Individual (HNI) need to have liquid assets worth Rs 10 crore or more.

Let's take a look at how the 8-4-3 rule works: For example, if we invest Rs 21250 every month at an annual interest rate of 12% for the next 15 years, we will accumulate Rs 1 crore by the end of the period! Rs 21,250 invested every month for the first 8 years, will lead to a corpus of Rs 34.3 lakhs.

This rule is based on the principle of compounding interest and suggests that if you invest in a mutual fund with a 12 per cent annual return, your investment will double approximately every 8 years. After the first doubling, it will double again in the next 4 years, and then a final time in the subsequent 3 years.

To accumulate Rs 1 crore in 20 years from an equity mutual fund offering a 12% yearly return, you have to invest Rs 10,880 a month for the entire tenure. When you can invest for 25 years, the monthly investment amount will come down to Rs 5,880. As you can see, the longer the tenure, the less amount you have to invest.

The corpus amount of ₹3 crore will ask for a much higher investment. If we assign your present portfolio of ₹14 lakh for this goal at 10% per annum (p.a.) growth, it has the potential to reach approximately ₹36 lakh at the end of 10 years. If we assume a 12%p.a. returns it can be ₹43.5 lakh.

Assuming a 6% inflation rate, the value of Rs 1 crore will diminish to Rs 55.84 lakh.