HOW LONG WOULD IT TAKE RS 10 LAC TO BECOME A CRORE?

A bank balance of Rs1 crore is a dream bank balance for several retail investors. To enjoy a satisfied and relaxed life, one ought to have a financially secured future. What’s more, in order to be financially independent, one must device a well-defined financial strategy and regularly ensure it. You might often find yourself wondering if you can achieve a corpus of Rs 1 crore by investing a lumpsum of Rs 10 lac. Well, you can. If you start early and invest in a disciplined manner, achieving a corpus of Rs 1 crore is not that difficult. This article aims to act as an investment guide for investors wishing to accumulate a corpus of Rs 1 crore.

How to achieve a corpus of a crore?

You can easily achieve this mark by investing in mutual funds. As an investor, you have a choice to invest in mutual funds either via a systematic investment plan (SIP) or lumpsum investment. If the funds are readily available for disposal, you might go forward with a lumpsum investment. You can use a lumpsum calculator to comprehend the time required to become a crorepati after investing a lumpsum of Rs 10 lac. A mutual fund lumpsum calculator helps to evaluate the returns earned on mutual fund investments over time.

The following table depicts the time required to accumulate a sum of Rs 1 crore after investing a specific amount in lumpsum mutual fund. The table also considers varying rates of interest on mutual funds.

Lumpsum investmentNumber of years to achieve a corpus of Rs 1 crore
Rate of interest earned on lumpsum mutual fund (in %)6%10%12%15%
Rs 10 lac40242016
Rs 15 lac33201714
Rs 20 lac28171412
Rs 25 lac24151210
Rs 30 lac2113119

As you can see, if you invest a lumpsum investment of Rs 10 lac, then your corpus is likely to turn into a crore after a tenure of 40 or 16 years, depending on the average rate of interest earned on your investments. As, 40 years is a quite a prolonged duration, experts recommend investors to invest regularly to achieve their target corpus earlier. Alternatively, you can also choose to invest in lumpsum, and then systematically transfer and invest in mutual funds. This can help to decrease your investment duration to a great extent.

Would it be sufficient?

While this seven-figure might appear enough to accomplish your goals and objectives, the same might not hold true 10-15 or even 20 years down the line. The answer is simple – inflation. Inflation has a tendency to eat away the value of your investments over time. Thank to inflation, the purchasing power parity of an investor tends to diminish over time. Thus, it is always advised to take inflation into consideration before planning your investments. Happy investing!

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