How to accumulate ₹1 crore in 10 years through Mutual Fund SIP?

Gautam Kalia, SVP and Principal Super Investor at Sharekhan by BNP Paribas

Assuming a return of 12% per annum to the investor, in 10 years Rs. 1 crore per month to create a corpus of Rs. 43,500 should be invested. Since this is a long term investment goal, investors can consider the below mentioned Equity Mutual Fund schemes.

S Ravi, former chairman of the Bombay Stock Exchange (BSE)

To deposit 1 Crore in 10 years through Mutual Fund SIP, you need to invest monthly SIP amount of approx. 65,000. However, this amount may vary based on the mutual fund’s historical returns, expense ratio and market conditions.

Some tips that can help you achieve this goal:

1. Early Start: Like all investments, the sooner you start, the less you’ll need to invest. Start your SIP as early as possible to take advantage of the power of compounding.

2. Portfolio Diversification: Diversify your portfolio across multiple mutual fund schemes and asset classes to reduce risk.

3. Review and Adjust Regularly: Regularly review and adjust your investment strategy to ensure that it aligns with your financial goals and market conditions.

4. Consider increasing your SIP amount from time to time: If your income grows over time, consider increasing your SIP amount to reach your goal faster.

Some popular mutual funds that have given consistent returns over the years include HDFC Top 100 Fund, SBI Blue-Chip Fund, ICICI Prudential Blue-Chip Fund, Axis Blue-Chip Fund and Mirae Asset Large Cap Fund. All investments are subject to market risks so keep in mind that past performance is not indicative of future results, and you should always consult a financial advisor before making investment decisions.

Nirav Karkera, Head of Research, Fisdom

One can mathematically derive the amount that needs to be invested over a period of time to get a corpus of INR 1 Cr. in ten years. This calculation requires treating the expected rate of return on equity and debt as the primary asset classes. While this could be anything, a conservative starting point would be to expect a 10% annual return with the equity and 6% annual return on the debt components.

These assumptions can be fine-tuned based on further details. If the monthly investment amount received seems too high, one can start with any amount and step on the amount along with the incremental income. For a ten-year horizon, it is important to be equity-heavy for at least the first eight or so years and reduce risk by gradually reducing equity exposure thereafter. On the equity side, Mirae Asset Largecap Fund, Kotak Flexicap Fund, Quant Active Fund and PPFAS Flexicap Fund are the funds with strong upside outlook. IDFC Dynamic Bond Fund, SBI Magnum Gilt Fund and HDFC Corporate Bond Fund are the strong contenders for debt.

Amit Gupta, MD, SAG Infotech

You can start with a lump sum amount and then layer on SIPs. However, it is assumed that you already own a fund.

The second is taking on more risk in exchange for more rewards. Long-term, large-cap funds are often safe, but choosing small-cap funds or sector funds is very risky.

The third option is to withdraw additional money from your savings every month to increase the amount invested. This option appears to be the most practical and feasible.

With the help of these problem statements, you can calculate how much money you can actually grow if you invest Rs. 36,335 every month for ten years. You must have invested Rs. 43.20 lakh as principal after 10 years, and the remaining amount will come from the profits of the fund.

However, a monthly investment of Rs. 36,335 is not a small number and saving that much money can be challenging for most people. What is the alternative then? Always keep in mind that time is on the side of SIP. The longer you run a SIP, the better and more profitable it becomes. So if you are really serious about building wealth then put in the time.

The above table is very clear in itself. How much money you need to invest every month to get a corpus of Rs. 1 crore decreases when your term increases by 5 years. All you need is a SIP of Rs. 1,444 per month to achieve his target corpus of Rs. 1 crore, for example, assume you start investing at the age of 25 and give yourself 30 years to do so. Timing has a lot to do with your SIP results.

Unfortunately, even those with the best intentions and most accurate calculations can make mistakes. Here’s how you can make your SIP a success.

Ruchika Bhagat, MD Neeraj Bhagat & Co.

Determine your investment amount: Use the mutual fund calculator to determine the amount of monthly SIP you need to invest in order to accumulate 1 crore in 10 years, assuming an average annual return of 12%. it turns out to be around 55,000 per month.

Choose the right mutual fund: You should choose mutual funds that have a good track record of giving high returns over a long period of time. Here are some mutual funds that you can consider:

Open-Ended Funds:

Close-Ended Funds:

Equity Fund:

Debt Fund:

Hybrid Fund:

Solution Oriented Funds:

Growth Funds:

Tax Saving Funds (ELSS):

You can also consider investing in a combination of large-cap, mid-cap and small-cap funds to diversify your portfolio.

Invest regularly: Invest a fixed amount regularly for the next 10 years to accumulate 1 crore. It is important to invest systematically and skip any SIP installment to achieve your investment goal.

Review your portfolio regularly to ensure that your investments are performing as per your expectations. You can make changes to your portfolio, if necessary, based on changing market conditions or your investment goals.

Consider long-term investment horizon: Mutual funds are a long-term investment option, and you should have a long-term investment horizon of at least 10 years to generate a significant corpus.

It is important to note that mutual fund investments are subject to market risks, and past performance is not a guarantee of future returns. Therefore, you should do your research and consult a financial advisor before making any investment decision.

Vivek Goyal, Joint MD, Tailwind Financial Services

Simply put, one would need to deposit 1 crore over a period of 10 years 43,000 assuming a return of 12% per annum. Now clearly this looks like a simple mathematical answer to a numerical goal. But beyond this answer is where the real goal lies. First, not everyone will have the extra disposable income to be able to start saving this amount. For this, it is necessary to understand the concept of ‘Step-up SIP’ as well as plan expenses adequately to maximize savings.

Just like our income increases every year, similarly one can start their SIP with a small amount and increase it by a certain percentage. Taking an example if we fix this percentage at 10%, the initial SIP requirement comes down to approx. 31,500. After understanding the first part, the second and more important is the behavioral aspect, where one needs to understand that 12% returns will be generated through equity funds which are not linear and require patience from investors to achieve the goal. Is.

Nehal Gupta, Director, AMU Leasing

Wealth building requires patience, discipline and a smart investment strategy. if you want to deposit 1 Crore in 10 Years through Mutual Fund SIP, Start Early, Stay Invested and Choose the Right Fund. Look for funds with a proven track record of delivering consistent returns over the long term. Consider diversifying your portfolio across various asset classes such as equity, debt and gold to reduce risk.

Some of the top-performing Mutual Funds that you can consider investing in include Axis Bluechip Fund, SBI Focused Equity Fund, Mirae Asset Emerging Bluechip Fund, HDFC Corporate Bond Fund and ICICI Prudential Gold Fund. Remember to invest regularly and increase your SIP amount as your income grows.

Above all, stay focused on your goal and avoid impulsive decisions based on short-term market fluctuations. With time, discipline and the right investments, you can achieve your financial goals and build a comfortable future for yourself and your loved ones.

EgyptPay COO Musharraf Hussain

Large-cap funds earned an average return on investment of 13.36% over ten years. Investing in Mutual Funds, also known as Systematic Investment Plan (SIP), is equivalent to investing in SIP, which invests in various assets according to a predetermined asset allocation strategy.

It is also possible to accumulate one crore in ten years by saving and investing Rs 40,000-45000 per month in an aggressive portfolio. If the SIP amount is increased by 5% per annum and the interest rate is increased by 12%, then the gain will be 1 crore taking ten years and six months to implement this method and benefit from it. A monthly investment of INR 30,000 works out to approximately Rs. 66 lakhs (calculated based on 12% long term returns).

I recommend Aditya Birla Sun Life Digital India Fund, Franklin India Technology Fund and ICICI Prudential Technology Fund.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.