SIP | Crorepati | Investment | Mutual Fund | ETF
Becoming a crorepati—that means, accumulating ₹1 crore in wealth—might seem like a dream for many, but with smart financial planning and disciplined investing, it is possible to become crorepati even in a short span of 10 years. One of the most effective and accessible ways to do this is through a Systematic Investment Plan (SIP) in mutual funds.
Crorepati in 10 Years with SIP
In this article, we’ll break down the method and show a real-world example of how SIP can help you reach ₹1 crore in 10 years. First of all let me explain What is SIP:
🧮 What Is an SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (monthly, quarterly) in a mutual fund. It promotes disciplined investing and helps you take advantage of rupee cost averaging and compounding over time.
💡 The Method: How SIP Helps You Reach ₹1 Crore
To reach ₹1 crore in 10 years, you need three main ingredients:
- Consistent monthly investment: It necessary to invest consistently without missing any installment. Even one bounce in SIP can deviate you from your target that is to become crorepati.
- Reasonable return expectation (usually 12–15% annually): There are so many mutual fund giving good returns. Some mutual funds are giving even more than this. But here we will calculate with conservative return.
- Time and patience (10 years in this case): Patience is the key because 10 years is a long duration.
🧾 Example: Becoming a Crorepati in 10 Years via SIP
Let’s take an example using conservative returns:
- Monthly SIP Amount: ₹43,000
- Time Horizon: 10 years
- Expected Annual Return: 12%
Using a SIP calculator, here’s what we get:
- Total Invested Amount: ₹51.6 lakhs
- Wealth Gained (Interest/Returns): ₹48.4 lakhs
- Final Corpus: ₹1 crore
If you can invest ₹43,000 every month in a good equity mutual fund that give a return of 12% annual return, you can become a crorepati in 10 years.
🔢 Formula for Calculation?
The formula used in SIP calculators is:FV=P×(1+r)n−1r×(1+r)FV = P \times \frac{(1 + r)^n – 1}{r} \times (1 + r)FV=P×r(1+r)n−1×(1+r)
Where:
- FV = Final Value
- P = Monthly SIP Amount
- r = Monthly rate of return (annual return ÷ 12)
- n = Number of months
In our case:
- P=₹43,000P = ₹43,000P=₹43,000
- r=12%÷12=1%=0.01r = 12\% ÷ 12 = 1\% = 0.01r=12%÷12=1%=0.01
- n=10×12=120n = 10 × 12 = 120n=10×12=120
Using this, you arrive close to ₹1 crore.
🔄 What If You Can’t Invest ₹43,000 Monthly?
Here’s a quick reference for different scenarios (approximate):
| Monthly SIP | Years | Return (12% p.a.) | Final Corpus |
|---|---|---|---|
| ₹20,000 | 15 | 12% | ₹1 crore |
| ₹30,000 | 12 | 12% | ₹1 crore |
| ₹43,000 | 10 | 12% | ₹1 crore |
If ₹43,000 is too much, you may consider extending your time horizon or gradually increasing your SIP each year with step-up SIP.
🛠 Tips for Success
- Start Early: The earlier you start, the lower the monthly investment needed.
- Be Consistent: Never skip SIPs; treat them like EMIs.
- Choose the Right Fund: Opt for good-performing equity mutual funds with strong track records.
- Review Annually: Monitor your portfolio, but don’t panic over short-term market movements.
- Increase SIPs as Income Grows: Use step-up SIPs to boost your investment.
✅ Conclusion
Becoming a crorepati is not about luck—it’s about smart choices, discipline, and patience. With a solid SIP plan and consistent investing, you can comfortably achieve ₹1 crore in 10 years or even sooner.
Ready to take the first step? Start your SIP today
FAQs
1. How much should I invest monthly in SIP to become a crorepati in 10 years?
To reach ₹1 crore in 10 years, you need to invest around ₹43,000–₹50,000 per month, assuming an average annual return of 12%.
2. Is SIP a safe investment to become a crorepati?
SIPs in mutual funds are market-linked, so they carry some risk. However, long-term SIPs in well-performing funds can offer good returns and reduce risk.
3. Can I start with a smaller SIP and increase it over time?
Yes, many investors use a step-up SIP approach—starting small and increasing their contribution annually—to reach large goals like ₹1 crore or more than that.
4. What type of mutual funds are best for long-term SIPs?
Equity mutual funds, especially diversified or index funds, are generally recommended for long-term wealth creation through SIPs.
5. Do I have to pay tax on ₹1 crore earned through SIP?
Yes, long-term capital gains (LTCG) above ₹1 lakh per year from equity mutual funds are taxed at 10% in India.
Disclaimer:
This article is for informational purposes only and does not constitute financial, investment, or legal advice. Readers are encouraged to do their own research and consult a qualified financial advisor before making any investment decisions.