Investing in mutual funds is among the most popular and reliable ways to grow your money, allowing you to achieve greater wealth and financial security. But what if that goal was more ambitious – like investing and getting 1 crore? It may seem daunting at first glance, but don’t be discouraged! With the right strategy and dedication, it can definitely be done. In this blog post, we will explain how to invest so you can eventually turn one crore into reality through mutual funds. Read on for invaluable tips about setting goals, risk management strategies, and more!

How to Make 1 Crore in 10 Years by SIP?

The most popular option for achieving the target of making one crore rupees in just 10 years is a Systematic Investment Plan (SIP). This requires disciplined investing, but the rewards can be high. If you have the funds readily available, starting with a lump sum and topping this up with SIP investments would be a good option. Unless you are willing to take on higher risks, sticking to large-cap mutual funds would be safer in the long term. Your best bet, however, might be to increase your monthly investments over time, as that fits better into most budgets. Careful planning with regular contributions should help you reach your goal of 1 crore in 10 years through an SIP investment plan.

How Would the SIP Work to Create 1 Crore in 10 Years Flat?

To reach the goal of 1 crore in 10 years, the SIP will require consistent and regular investments. The amount you choose to invest each month is ultimately up to you, but here’s an example of how it can work: let’s say you choose to start investing Rs 36,000 every month through a mutual fund SIP. Assuming a 15 percent rate of return on your investment over 10 years (which is very conservative by industry standards), this would translate into a corpus of ₹1,00,31,662 at the end of 10 years. It’s important to remember that nothing is guaranteed in the world of investing. It’s always best to have realistic expectations about your returns and take precautions against market risks. Making 1 crore in 10 years is an ambitious goal, but it’s achievable with the right strategy and commitment. If you start early enough, have a disciplined approach, and are willing to stick to your investments for the long term, then investing through SIP should get you there.

Here is how much you need to invest to get the return of 1 crore in certain years:

Tenure of SIP Yield on SIP Fund Your Total Investment Monthly SIP Required
10 years 15% ₹43.6 Lac ₹36,334.96
7 years 15% ₹57.09 Lac ₹67,967.55
5 years 15% ₹67.74 Lac ₹1.13 Lac
4 years 15% ₹73.59 Lac ₹1.53 Lac
So why wait? Start investing today and make that one crore a reality!

If You Are New to Investing

If you are very new to investing and need help understanding everything, we suggest you hire a financial advisor or wealth management company. We can also help you with your investment journey; Wealth First Online is the best investment company. Dial +91 9979854966 and get in touch with our certified financial planner.

How to Make the Most of Your SIP?

1. Get Benefits of the Power of Compounding

Investing in Equity Mutual Funds is an ideal strategy for investment via a Systematic Investment Plan (SIP). SIPs on equity funds allow you to benefit from the power of compounding, which is much higher than any type of debt fund. In the long run, it can provide exponential returns due to compounding, and your money has the potential to magnify multiple times. Furthermore, time plays an essential role in equities as opposed to “timing” with debt or liquid funds, meaning that by investing for longer, you can increase your wealth. Investing in equity funds through SIPs is a sound way to make long-term financial goals a reality. Systematic Investment Plans (SIPs) should be set up and adhered to in a disciplined manner, as suggested by the acronym. When SIPs are disrupted, the compounding of gains of long-term investments is also disrupted. Stopping the SIP should be avoided unless there is an absolute necessity to do so. The best practice is establishing a rule-based approach and making it as passive as possible. Instead of timing SIPs according to highs and lows in the market, invest at regular intervals over an extended period to maximize returns.

2. Always Invest in Diversified Fund Options

Setting a Systematic Investment Plan (SIP) is an excellent way to save and invest in the market, but you need to be sure that you have the funds available on time. Choosing a date for your SIP each month is recommended to be comfortable enough so that you don’t miss out. For those who prefer the Electronic Clearing System (ECS) option for their SIPs, it is vital to ensure their bank accounts are sufficiently funded in advance, so there are no problems with payment processing. Additionally, the SIP date should not be too close to one’s salary dates, as that can cause unforeseen issues. With this advice in mind, investors will hopefully have no trouble setting up and managing their SIPs. Investing in equity funds through a Systematic Investment Plan (SIP) should be strategically thought out, with a full focus on diversified fund options or flexi-cap funds. While thematic, small-cap, mid-cap, and sectoral funds may seem attractive on paper due to their higher yields and promising returns, they pose greater risks, too. As changes in the economic cycles tend to impact cheaper stocks more than large ones due to higher volatility, significant underperformance is likely over a more extended period of time, leading to unwanted stress and financial loss. Hence, it is recommended to stay away from these funds and invest conservatively in diversified SIPs for better results.

3. Always Choose Growth Plan

Investing in SIPs can be a great way to secure your financial future, but it is important to understand the options available when choosing between growth and dividend plans. While dividend plans provide the immediate appeal of regular payouts, growth plans offer more excellent value by automatically reinvesting returns and compounding them over time. This significantly increases the amount you can potentially earn over time. Moreover, growth plans are generally more tax-efficient than dividend plans, providing another motivation for selecting them over other options. The golden rule is to always opt for a growth plan when considering which plan is right for you.