How To Earn 1 Crore In 10 Years?!!
In order to build a substantial corpus of ₹1 crore in 10 years, you’ve come to the right place. In this blog post, we’ll provide you with a comprehensive investment plan that includes the monthly SIP (Systematic Investment Plan) amount, duration, and strategies to help you achieve your goal of accumulating Rs. 1 Crore in just 10 years.
Table of Contents
Investing in mutual funds is a popular and relatively low-risk way to accumulate wealth over time.
Define Your Goal and Risk Tolerance
Before you start investing, it’s crucial to determine your financial goal and assess your risk tolerance. In this case, your goal is to accumulate ₹1 crore in 10 years. You also need to consider your risk tolerance – how comfortable are you with market fluctuations? Generally, a longer investment horizon allows for a more aggressive risk profile.
Choose the Right Mutual Funds [How To Earn 1 Crore In 10 Years]
To reach your goal, you’ll want to invest in a combination of equity mutual funds, debt funds, and hybrid funds. Equity funds have the potential for higher returns but come with higher risk, while debt funds are more stable but yield lower returns. Hybrid funds provide a balance of both.
Here’s a suggested allocation:
- Large-Cap Equity Funds: 50%
- Mid and Small-Cap Equity Funds: 20%
- Debt Funds: 20%
- Hybrid Funds: 10%
Diversifying across these categories helps manage risk while pursuing decent returns.
Calculate the Monthly SIP Amount
To calculate the SIP amount required to reach a ₹1 crore goal in 10 years at different rates of return per annum, we’ll use the formula provided earlier:​
Where:
- PMT = Monthly SIP amount
- A = ₹1 crore
- r = Monthly rate of return (varies)
- n = Number of months (10 years = 120 months)
Let’s calculate the SIP amount required at different rates of return (r):
| Annual Rate of Return (%) | Monthly Rate of Return (r) | Monthly SIP Amount (₹) |
|---|---|---|
| 6% | 0.50% | ₹65,178 |
| 8% | 0.67% | ₹54,575 |
| 10% | 0.83% | ₹45,159 |
| 12% | 1.00% | ₹36,682 |
| 14% | 1.17% | ₹29,895 |
| 16% | 1.33% | ₹24,529 |
At the rate of return of 16% per annum, monthly SIP amount of Rs.24,529 can accumulate an amount of Rs. 1 Crore in 10 years time. Mutual Funds is certainly an assured low-risk way to achieve this rate of return the long run of 10 years time.
Start Early and Stay Disciplined [How To Earn 1 Crore In 10 Years]
The power of compounding is your best friend in wealth accumulation. The sooner you start investing, the better. Even if you can’t contribute a large amount initially, start with what you can afford and increase your SIP amount as your income grows.
Additionally, discipline is key. Stick to your investment plan, avoid panic selling during market downturns, and continue investing regardless of short-term market fluctuations.
Tax Planning
Don’t forget about tax planning. Certain mutual funds offer tax benefits, such as ELSS (Equity Linked Saving Scheme) funds, which offer tax deductions under Section 80C of the Income Tax Act. These can help you save on taxes while building wealth.
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Disclaimer:
This is not a stock recommendations. All efforts have been made to correctly represent facts and figures in the post. The website or its management is not responsible for any kind of losses arising out of Investing in equities. Investors must therefore exercise due caution while investing or trading in stocks. NSE Options.in or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing
