How to grow 1 cr in 5 years?

The essential steps to make ₹1 crore in 5 years include setting your financial goals early on, planning your path, investing in Equity Mutual Funds, and doing consistent tax planning . The popular investment options in India include stocks, bonds, ETFs, mutual funds, and ULIPs.

How to save rs 1 crore?

If you can invest 15-20% of your salary every month , you can achieve your dream goal of Rs 1 crore within a reasonable period. Keep in mind that when you invest a small amount, it will take a longer time to achieve your goal.

How to make 1 crore by investing 5000 per month?

If you continue with your investments for a long time, you can easily become a crorepati. In 26 years, you can accumulate a Rs 1 crore corpus if you begin investing Rs 5,000 per month in mutual fund SIP . Here the interest rate, let's assume, remains constant at 12 per cent per annum.

How to make 1 cr with SIP?

The rule says to achieve the goal of earning Rs 1 crore, an investor should invest Rs 15,000 monthly through SIP for 15 years, considering a 15% annual return from an equity fund . Consistent adherence to this strategy can lead to significant wealth accumulation.

Is 10 crore enough to retire in India?

Looking at all these factors, it is extremely important to have a sufficient amount before opting for early retirement . If we assume a life expectancy of up to 85, then you will have to plan for 33-35 years. We hope you have factored this into the ₹10 Cr corpus that you want to build for your retirement.

What if I invest $10,000 in SIP for 5 years?

Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today .

What if I invest $5000 a month in SIP for 3 years?

A monthly SIP of Rs. 5000 for 3 years would have become Rs. 2.38 Lakhs from the total of Rs. 1.8 Lakhs invested over the time period.

What is 7 5 3 1 rule in SIP?

While the majority of your SIP investments are spread across multiple funds, the 7-5-3-1 rule suggests setting aside a portion for a one-time lump sum investment . This allows you to capitalize on specific opportunities or market conditions.

What is the 15 15 15 rule in SIP?

How to calculate 15-15-15 rule? To calculate the 15-15-15 rule, multiply 15% of your monthly income by 12 to get the annual investment amount . Invest this amount monthly for 15 years in a mutual fund targeting 15% annual returns. Use an SIP calculator to project potential earnings based on these inputs.

How to get 1m in 5 years?

Saving a million dollars in five years requires an aggressive savings plan . Suppose you're starting from scratch and have no savings. You'd need to invest around $13,000 per month to save a million dollars in five years, assuming a 7% annual rate of return and 3% inflation rate.

What is the 8 4 3 rule of compounding?

Get a ₹50 lakh corpus with only ₹10,000 monthly investment. Learn about the 8-4-3 rule of compounding, where investments double within 8, 4, and 3 years, showcasing exponential growth . It emphasizes staying dedicated to investment plans, guarding against inflation, and adapting to market changes.

How much growth to double in 5 years?

Alternatively you can calculate what interest rate you need to double your investment within a certain time period. For example if you wanted to double an investment in 5 years, divide 72 by 5 to learn that you'll need to earn 14.4% interest annually on your investment for 5 years: 14.4 × 5 = 72.

How to make your first Rs 1 crore in 5 years (2024)

With just a little bit of careful planning and considering some factors such as age, existing portfolio, asset allocation, and market conditions, you can get to the Rs 1-cr mark soon.

Every investor dreams of reaching the golden number – their first one crore. Why is the one crore figure so important? It’s a milestone that represents financial stability and achievement.

Let’s say that you saved Rs 1 crore today; if you invest this at the rate of 15%, in just five years you will have another Rs 1 crore. This is where the magic of compounding begins. Let’s take this example even further and assume that you kept this nest egg untouched for another five years, you will then be sitting on almost Rs 4 cr.

However, for the most of us, getting to this Rs 1-crore mark itself can seem like a daunting journey.

What strategy should all investors follow?

Starting Early – The Key to Success:

The sooner you start investing, the better. Time is a powerful ally when it comes to compounding returns. Starting early allows your investments to grow exponentially, giving you a head start towards your financial goals. The longer you invest, the better your chances of maximising returns.

How to make your first Rs 1 crore in 5 years (5)

As we can see the accumulated corpus increased by almost 100% with each incremental five years. Therefore, opting for a longer tenure is better.

If you already have some savings, leverage them wisely. Planning with available funds is crucial. Consider the potential of your existing portfolio and explore how you can optimize it to accelerate your journey to one crore.

Working Backwards – The Math Behind the Goal

Setting your goal first is the key to financial planning. Most of us save the excess of our income after budgeting for the expenses. However, the math should be the other way round.

Expenses = Income – Savings.

Understanding your financial gaps is vital. Start with goal planning and then you will get a clear picture regarding how much you need to invest every month. Also, create a budgeted expense pattern, this will allow you to set realistic goals and create a roadmap to reach the one crore mark.

Adjust Expenses with Salary Hikes: Most of us have a tendency of increasing our standard of living with new inflow of funds. However, it is wise to redirect a portion of the increased salary towards investments to decrease the tenure.

You may opt for either of the options based-on availability of funds. With your monthly inflows you should go ahead with SIPs. If you receive lumpsum amounts via bonus etc and market is stable, you may go ahead with lumpsum investment or stagger it across a month.

Strategic Asset Allocation:

Choose your assets wisely based on your risk appetite. Debt and Equity have a low correlation and a combination of these two assets can help in targeting a return around 12% based on your horizon of investment. Equity Mutual Funds have delivered an average return of 14% over longer tenure and Debt Mutual Funds have approximately delivered 6% return. The table provided outlines the recommended equity and debt allocation ratios for different age groups.

How to make your first Rs 1 crore in 5 years (6)

How to reach One Crore in 5 Years?

Depending on your risk appetite, invest specific amounts through SIP or lumpsum to achieve the one crore milestone in five years.

Option 1: Reaching 1 cr Goal via SIP in 5 Years

How to make your first Rs 1 crore in 5 years (7)

Option 2: Reaching 1 cr Goal via Lumpsum amt in 5 Years

How to make your first Rs 1 crore in 5 years (8)

To conclude, the key to success lies in starting early, staying disciplined, and adapting your strategy as needed. With careful planning and commitment, the golden number is within reach for every investor.

(By Feroze Azeez, Deputy CEO, Anand Rathi Wealth Limited. Views are personal)