Most retail investors dream of becoming a crorepati one day. Do you dream of achieving a corpus of Rs 1 crore in the near future too? The good news is that you can. If you think about it a 1 crore bank balance is not that difficult. All you need is perseverance and patience with your mutual fund investments. Devising the right financial plan for your investment portfolio can easily help you get a figure of Rs 1 crore in a few years down the line. This article will help you achieve that figure by investing a lumpsum of Rs 10 lacs. Read on to know more.
How early can you become a crorepati?
Achieving a corpus of Rs 1 crore is not that difficult. It’s just a matter of time. So, the real question arises how fast can you become a crorepati? Well, it is entirely dependent on the returns achieved by your scheme and the amount you can afford to invest in these mutual fund schemes.
You can use an investment tool known as lumpsum calculator to help you evaluate the value of your mutual fund investments at the end of the investment tenure. This investment tool can provide you with an estimated time duration required to create a corpus of Rs 1 crore. The following table considers varying rate of interests and different investment amount to achieve a bank balance of Rs 1 crore:
| Lumpsum investment | Estimated time duration to attain a corpus of Rs 1 crore | ||||
| Assumed rate of interest on different schemes | 6% per annum | 10% per annum | 12% per annum | 15% per annum | 20% per annum |
| Rs 5,00,000 | 51 years | 32 years | 27 years | 22 years | 17 years |
| Rs 10,00,000 | 40 years | 24 years | 20 years | 16 years | 13 years |
| Rs 20,00,000 | 28 years | 17 years | 14 years | 12 years | 9 years |
| Rs 30,00,000 | 21 years | 13 years | 11 years | 9 years | 7 years |
You can easily pin point from the table that it’d take somewhere around 13 to 40 years to turn a lumpsum amount of Rs 10 lac into a corpus or Rs 1 crore. The higher the average returns offered by your mutual fund scheme, lower would be the time to achieve this dream. If you wish to achieve this eight-digit figure in a short span of time, it is recommended to start an SIP investment along with lumpsum investment.
Would this be enough to cater to your future needs?
While a sum of Rs 1 crore might seem a significant amount at the moment, it might have the same value a few years down the line. And if your investments are likely to take 20 to 40 years, then it might lose its charm altogether. This is because of the concept known as inflation. Inflation erodes the real value of an investment. In simple terms, due to the power of inflation, the purchasing power parity of currency diminishes with time. Hence, it is always advised to take inflation into consideration while planning your investments.
Most mutual fund return calculator have an option to adjust for inflation and provide a truer picture of your mutual fund investments. Why are you still here? Invest now to secure your future tomorrow. Happy investing!
