How Much Time & Money It Takes To Become A Crorepati Through Mutual Fund SIPs

Who doesn't want to be a crorepati? Surely everyone does, right? But how many of us actually work towards becoming one?

Either we can just sit and wish to win a lottery someday or be more realistic and begin investing to become a crorepati. The choice is yours!

If you opt for the second option, i.e. to invest towards wealth creation, the first thing that comes to mind is how much to invest, where to invest, and for how many months/years to invest for becoming a crorepati, right?

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Well, given that mutual funds provide better returns, especially over the long term, when compared to PPF (7.1% p.a.) and Bank FDs (5%-9%), let us go ahead with this option to inch you closer to the idea of becoming a crorepati through regular investing.

Moreover, as mutual fund SIPs' popularity and investment inflows are at an all-time high in our country in recent months as investors seem to finally have begun to realise its benefits, wouldn't it be nice to get a fair idea of how much you would need to invest in mutual fund SIPs to become a crorepati?

But before we go ahead in your investment journey, remember that slow and steady wins the race!

Now let us use a goal-planning calculator to find out how much time and money it takes to accumulate ?1 crore and become a crorepati:

How Much To Invest In Order To Become A Crorepati

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Also Read: How Much To Invest In Order To Become A Millionaire

Equity Mutual Funds (Assuming a category average returns of 12%)

If you invest approximately ?20,000 every month, you will be able to reach the ?1 crore target in 15 years.

If you invest approximately ?43,000 every month, you will be able to reach the ?1 crore target in 10 years.

If you invest approximately ?10,000 every month, you will be able to reach the ?1 crore target in 20 years.

If you invest approximately ?5,000 every month, you will be able to reach the ?1 crore target in 25 years.

If you invest approximately ?1.2 lakh every month, you will be able to reach the ?1 crore target in just 5 years.

Debt Mutual Funds (Assuming a category average returns of 5%)

If you invest approximately ?37,000 every month, you will be able to reach the ?1 crore target in 15 years.

If you invest approximately ?64,000 every month, you will be able to reach the ?1 crore target in 10 years.

If you invest approximately ?24,000 every month, you will be able to reach the ?1 crore target in 20 years.

If you invest approximately ?16,000 every month, you will be able to reach the ?1 crore target in 25 years.

If you invest approximately ?1.4 lakh every month, you will be able to reach the ?1 crore target in just 5 years.

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Hybrid Mutual Funds (Assuming a category average returns of 8%)

If you invest approximately ?37,000 every month, you will be able to reach the ?1 crore target in 15 years.

If you invest approximately ?64,000 every month, you will be able to reach the ?1 crore target in 10 years.

If you invest approximately ?24,000 every month, you will be able to reach the ?1 crore target in 20 years.

If you invest approximately ?16,000 every month, you will be able to reach the ?1 crore target in 25 years.

If you invest approximately ?1.36 lakh every month, you will be able to reach the ?1 crore target in just 5 years.

Keep This In Mind Before Investing

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If you wish to become a crorepati, the time taken to do so would depend on how much you invest through SIPs and in which mutual fund category.

Don't just take the shortest tenure in the rush to become a crorepati. It's always advisable to choose your investment avenue, amount and tenure carefully after assessing the risk and returns associated, besides taking into consideration your current EMIs, rent, utility bills and other recurring expenses as well as set financial goals.

Only after factoring in all this, you can decide how much you can comfortably invest in a disciplined manner every month in mutual fund SIPs, without stressing your financial health or jeopardizing other life goals.

Also Read: How Much Tax You Pay For Your Investments

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