How much to invest monthly to create a corpus of Rs 2 crore in 10 years (2024)

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How much to invest monthly to create a corpus of Rs 2 crore in 10 years (1)

I’m 41 and have daughters aged seven and five. I plan to retire at 60-62 years. My investments are as follows. For retirement, I have Rs 1.6 crore in the Nifty 50 index fund and an EPF balance of Rs 10 lakh, with a monthly contribution of Rs 75,000. For children’s foreign education and weddings, I have a fully paid Ulip worth `50 lakh in large-cap equity funds, and another Ulip worth Rs 8 lakh, with Rs 22,500 monthly contribution for four years. I expect to inherit an ancestral property worth Rs 1 crore. My monthly expenses are Rs 2 lakh, including Rs 60,000 home loan EMI for 19 years. I have no investible surplus. Is the corpus enough to help meet my future needs?

Rushabh Desai, Founder, Rupee With Rushabh Investment Services:

Assuming 12% CAGR returns in equity and 6% in fixed income, you can amass around Rs 19 crore for retirement after 20 years, with the help of Rs 1.6 crore in equity MF and Rs 10 lakh (with Rs 75,000 monthly contribution) in the EPF. Considering your current expenses (removing EMI expense) and adjusting for 7% annual inflation, your retirement corpus should help you sustain on fixed income products, assuming a life expectancy of 80 years. Studying abroad is expensive and costs can range from $50,000 to $1,00,000 per annum, per head, which is around Rs 42-84 lakh in today’s value. This will vary for different countries and universities. Weddings can also be costly. The surplus of `1.58 crore (Ulips, property) may not be enough for foreign education and weddings costs for both children. Education and wedding inflation can be 10-12% per annum. It is also advisable to avoid Ulips as they are hybrid products. These will only give you partial benefit from the investment and insurance buckets. To maximise the benefits, it is important to keep your investment and insurance portfolios separate. This will help you generate optimum returns from your investments and get full benefit from insurance by securing yourself and your family. Since you are 41 years old and have a long time horizon, you should venture into well-diversified flexicap mutual funds, instead of going for pure large-cap funds. Many of these funds have 50-60%, or more, allocation to large caps. Having some exposure to mid caps and small caps is important to maximise your returns over the long term. However, if you are unable to stomach much volatility, then sticking to pure largecap funds makes sense.

I am 38 years old and my monthly income is Rs 1 lakh. I have equity mutual funds worth Rs 10 lakh (with a Rs 35,000 monthly SIP) and Rs 40 lakh in the Provident Fund. How much should I invest via SIPs in the next 10 years to create a Rs 2 crore equity corpus? I have an aggressive risk appetite.

Prableen Bajpai, Founder, FinFix Research and Analytics:

As you have indicated a high risk appetite, let’s consider two return scenarios. If we assume 12% market returns on your investment, the lump sum of Rs 10 lakh and SIP of Rs 35,000 will help build a corpus of close to Rs 1.09 crore in 10 years. To reach your target of Rs 2 crore in 10 years, you’ll need to increase the monthly SIP by Rs 40,000, taking it to Rs 75,000. Alternatively, you could consider raising the SIP to Rs 50,000 per month and gradually increasing it by 10% each year. Even if we assume a higher return of 15%, the current investment will not suffice and you will fall short by Rs 68 lakh, instead of Rs 91 lakh in the first case. This is because the time for compounding to work is less and even higher returns cannot compensate for this. Even with higher returns, an incremental investment of Rs 25,000 per month (monthly SIP of Rs 60,000) will be required. However, if you continue to invest for 15 years, providing more time for compounding, you can amass around Rs 2.2 crore with your original investment. A step-up by 10% each year will boost the corpus to Rs 3.4 crore in 15 years. Reaching your target in 10 years is ambitious, and you will have to increase the current SIP and extend the investment horizon to achieve it.

I’m 18 and want to start investing. I need guidance on how to allocate Rs 2,000 across mutual funds and gold bonds for the long term. What is the right age to purchase health and term insurance to secure my finances?

Adhil Shetty, CEO, BankBazaar:

If you are planning to invest for eight years or more, you can explore a combination of ELSS and index funds. Index funds simply mirror the returns of an index like Nifty or Sensex. ELSS is an actively managed fund that has a lock-in period of three years and is among the best instruments for long-term investment. To start with, you can consider the Nifty 50 fund or an ELSS tax-saver from a reputed fund house. Consider gold only as a hedge and do not park more than 5-10% of your investment in it. Before you start investing, keep 3-6 months’ expenses as an emergency fund to protect your long-term savings. If you have student loans or are an earning member of the family, consider getting term insurance and increase the amount over time as your responsibilities grow. As for health insurance, most family floater plans cover adult children till the age of 25. So, if your parents have a floater plan, chances are that you will not need one right away. However, read the terms and conditions carefully to understand the extent of coverage and age limit.

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FAQs

How much to invest monthly to create a corpus of Rs 2 crore in 10 years? ›

To reach your target of Rs 2 crore in 10 years, you'll need to increase the monthly SIP by Rs 40,000, taking it to Rs 75,000. Alternatively, you could consider raising the SIP to Rs 50,000 per month and gradually increasing it by 10% each year.

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How much to invest to get 2 crore in 10 years? ›

Specifically, you would need to invest ₹49,000 per month and achieve an average annual return of 21% to reach ₹2 crore in 10 years.

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How much to invest to make 1 crore in 10 years? ›

In order to make 1 crore in 10 years, here are the following amount one needs to invest. An individual can invest INR 38,050 to get 15% annual interest. Hence, in 10 years, the amount will be INR 1,0,09,124, and the investor will achieve the target of making 1 crore in 10 years.

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How to create a corpus of 1 crore in 10 years? ›

You should try to invest at least 20-30% of your in-hand salary in equity mutual funds for the long term. Assuming 12% CAGR returns in equities for 14 years till you are 50, if you invest Rs 25,000 per month via SIPs in equity mutual funds, you shall be able to generate around Rs 1.09 crore.

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How much SIP will make 10 crore in 10 years? ›

How to accumulate a Rs 10 crore corpus in 10 years? Assuming an expected return rate of 12 per cent per year, an investor would need to invest Rs 4.34 lakh per month in equity funds through SIP to create a corpus of over Rs 10 crore in 10 years.

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How to build a corpus of 2 crore? ›

Increasing the SIP investments with a rise in income and putting 60-70% of the money in mid and small cap funds can help to build a corpus of ₹2 crore, according to expert advice. Retirement planning is essential for enjoying the golden years of your life without any stress.

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Can I retire with 2 crore in India? ›

Locking your ₹2 crore corpus into a large bank (HDFC, ICICI, SBI) FD for 3 to 4 years could indeed generate a predictable monthly income of ₹1-1.2 lakh. Investing in FDs currently can help you create a high corpus for your retirement.

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What happens if I invest $20,000 a month in SIP for 10 years? ›

A monthly SIP of Rs 20,000 in Quant Small Cap Fund would have grown to Rs 1.04 crore in the last 10 years. The scheme gave an XIRR of 27.73% in the same period. Quant ELSS Tax Saver Fund would have turned a monthly SIP of Rs 20,000 into Rs 95.38 lakh with an XIRR of 26.04% in the last 10 years.

How much should I invest to get $50,000 per month? ›

Assuming the average annual dividend yield to be 7%*, you would need to invest INR 85,00,000 to get approximately INR 50,000 per month. *The average dividend rate is calculated from the top 15 dividend-yielding stocks.

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What if I invest 30 000 a month in SIP for 5 years? ›

Higher returns may cost you higher risk. Moreover the returns will depend upon the fund manager and fund house you are investing into. 12% returns will make your 30k per month investment of total 18 Lacs into sum of 24.78 Lacs Rs at the end of 5 years.

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What if I invest 10000 a month in SIP for 10 years? ›

Estimating a 12% annualized return over the next decade, a monthly investment of Rs 10,000 could potentially accumulate to around Rs 23 lakhs. For a 10-year SIP (Systematic Investment Plan), considering a FlexiCap fund seems prudent as it spreads risk across Large, Mid, and Small cap segments.

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What happens if I invest $1,000 in SIP for 20 years? ›

Based on this data you will have approx 08–09 lakhs. Here your money will be safe or have zero risk. Mid Cap Mutual Fund:- If you invest Rs 1000/per month for 20 yrs in Mid cap mutual fund, Assuming that 15–16 % interest rate. You will have approx 15–16 lakhs.In long term all mutual funds are safe.

How to make 3 crore in 10 years? ›

At present, your potential to invest is ₹60,000 per month and if you keep investing the same amount every month for the coming 10 years, you will be able to build a corpus of ₹1.2 crore at 10% p.a. and ₹1.33 crore at 12% p.a. You need a monthly investment of ₹1.15 lakh to reach your goal of ₹3 crore.

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How to make 2 cr in 20 years? ›

An investment of Rs 20,000 a month will help you amass Rs 2 crore, which would last for roughly 27 years after retirement. Invest only after recalculating your projected expenses and accounting for inflation. You can invest in blue-chip and passive funds to build your retirement corpus.

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How much SIP should I do for 2 crore? ›

Rs 25,000 SIP: Monthly SIP of Rs 25,000 will help you reach Rs 2 crore in 18 years and 4 months at 12% CAGR. Rs 30,000 SIP: Monthly SIP of Rs 30,000 will help you reach Rs 2 crore in 17 years at 12% CAGR. Rs 40,000 SIP: Monthly SIP of Rs 40,000 will help you reach Rs 2 crore in 15 years at 12% CAGR.