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SIP Investment: A corpus of ₹10 crore can be built through disciplined, long-term investing via Mutual Fund SIPs. However, returns depend on market performance.

Mutual Fund Investment: Building a corpus of ₹10 crore might seem daunting to many, but it is achievable with the right investments and long-term discipline. Financial experts emphasize that time plays the most crucial role in achieving major financial goals. The earlier one starts investing, the smaller the capital outlay required to build a substantial corpus.

Mutual Fund SIPs (Systematic Investment Plans) have become a popular method for wealth creation over the long term. However, the returns generated depend on market performance and come with no guarantees.

How to build a ₹10 crore corpus with a ₹10,000 SIP?

If an individual starts an SIP of ₹10,000 per month and increases the investment amount by 10% annually, a substantial corpus can be accumulated over time.

Based on calculations, assuming an average annual return of 12%, the investment could grow to approximately ₹10.18 crore in about 31 years. During this period, the investor would contribute a total of around ₹2.18 crore, while the remaining ₹8 crore would be generated through the power of compounding.

Increase investment amount to reach the ₹10 crore goal faster

Alternatively, if an individual starts with a higher amount, the ₹10 crore target can be achieved in a shorter timeframe. For instance, starting with an SIP of ₹25,000 and increasing it by 10% annually could result in a corpus of ₹10.69 crore in about 25 years. The total investment amount in this scenario would be approximately ₹2.95 crore. Alternatively, if an individual wishes to achieve their goal sooner, a monthly SIP of ₹50,000 can help them reach a corpus of approximately ₹10 crore in about 20 years. Although the SIP amount is higher, the goal can be realized in a significantly shorter timeframe.

Step-up SIPs Accelerate Wealth Creation

According to experts, a step-up SIP can be an excellent strategy for long-term wealth creation. It involves increasing the investment amount in tandem with rising income, allowing for the accumulation of a substantial corpus without causing financial strain.

However, it is crucial to assess your financial situation, goals, and risk appetite before investing. Since mutual funds are market-linked investments, there is no guarantee of returns. Therefore, consulting a financial advisor before making any major investment decision is highly recommended, as it could prove to be the best course of action for you.