How to save Rs 1 crore in 10 years, 15 years, 20 years: Check how much you need to invest every month (2024)

FAQs

How much to invest to get 1 crore in 15 years? ›

To earn 1 crore from mutual fund investment in 10 years (annual return is 12%), you need to invest Rs 44,640 every month for the entire tenure. If you can extend the investment horizon by five more years to 15 years, you have to invest Rs 21,020 a month.

What will be the value of Rs 1 crore after 10, 20 or 30 years? Assuming a 6% inflation rate, the value of Rs 1 crore will diminish to Rs 55.84 lakh. This shows the impact of inflation on long-term savings and investments.

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.

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.

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.

The table below shows the present value (PV) of $10,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $10,000 over 20 years can range from $14,859.47 to $1,900,496.38.

According to the Upstox SIP calculator, a 40-year-old would need to invest ₹33000 per month for the next 20 years to build a corpus of ₹5 crore by the age of 60, assuming a 15 per cent annual rate of return and monthly compounding.

Even with higher returns, an incremental investment of Rs 25,000 per month (monthly SIP of Rs 60,000) will be required. However, if you continue to invest for 15 years, providing more time for compounding, you can amass around Rs 2.2 crore with your original investment.

Monthly SIP required

For example, if you start at the age of 25 and give yourself 30 years to invest, then you just need a SIP of Rs. 1,444 per month to reach a target corpus of Rs. 1 crore.

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.

SIPs can be used for investing in all mutual funds, but they are typically more popular for investing in equity funds. On the other hand, FDs require you to invest a lump sum at once, earning a fixed interest rate until the deposit matures. FDs are widely considered safer, offering guaranteed returns.

Hence, there are approximately 120,382 US Dollars in 1 Crore Indian Rupees. This conversion provides a perspective on the value of a large sum in Indian currency when expressed in US Dollars, a widely used international currency.

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.

But in order to be a millionaire via investing in 15 years, you'd only have to invest $43,000 per year (assuming a 6% real rate of return, which accounts for inflation). I know, I know – only $43,000 per year. No big deal. *From this point forward, the average real rate of return we'll be assuming is 6%.

Even with higher returns, an incremental investment of Rs 25,000 per month (monthly SIP of Rs 60,000) will be required. However, if you continue to invest for 15 years, providing more time for compounding, you can amass around Rs 2.2 crore with your original investment.

The 15-15-15 rule suggests investing 15% of your income for 15 years in a mutual fund with 15% annual returns. Compounding is the process of reinvesting earnings to generate more returns. By following this rule, you can achieve long-term financial goals such as accumulating a substantial corpus for future needs.

For a 15-year investment horizon, equity mutual funds or a combination of equity and hybrid funds may be suitable options. These funds typically aim for capital appreciation and have the potential to generate higher returns over the long term, albeit with higher risk.