Building wealth is not a get rich quick plan. It requires discipline, consistency, and long-term commitment. With the right strategy, even salaried individuals or small investors can reach a significant milestone like a Rs 10 lakh corpus.
Although Rs 10 lakh may seem modest in today’s rising cost of living, achieving it gives financial confidence and security.
Why SIPs Are a Smart Choice
One of the easiest ways to reach this goal without straining your monthly budget is through a Systematic Investment Plan (SIP) in mutual funds. SIPs are flexible: you can choose the amount and tenure based on your financial capacity.
SIPs benefit from compounding and rupee cost averaging, which help grow wealth steadily over time. They are ideal for:
- Salaried individuals
- People with irregular income
- Investors aiming for medium to long term goals
How Returns and Tenure Affect Your Corpus
The rate of return and investment tenure play a crucial role in reaching Rs 10 lakh. Higher returns or longer durations reduce the monthly amount needed.
Here’s a look at how much you need to save every month to achieve Rs 10 lakh over 10 years, assuming different annual returns:
1. SIP at 8% Annual Return
- Monthly investment: Rs 5,550
- Tenure: 10 years
- Total investment: Rs 6.66 lakh
- Estimated returns: Rs 3.4 lakh
- Maturity corpus: Rs 10.06 lakh
2. SIP at 10% Annual Return
- Monthly investment: Rs 5,000
- Tenure: 10 years
- Total investment: Rs 6 lakh
- Estimated returns: Rs 4.07 lakh
- Maturity corpus: Rs 10.07 lakh
3. SIP at 12% Annual Return
- Monthly investment: Rs 4,500
- Tenure: 10 years
- Total investment: Rs 5.4 lakh
- Estimated returns: Rs 4.68 lakh
- Maturity corpus: Rs 10.08 lakh
Key Takeaways
- Higher returns reduce the monthly SIP amount required.
- If you cannot invest a large monthly sum, extending your investment horizon will help reach Rs 10 lakh.
- SIP returns are not guaranteed and depend on market conditions and fund performance.
Conclusion: A disciplined SIP strategy, combined with time and smart fund selection, can help investors build their first Rs 10 lakh corpus and lay the foundation for long term wealth creation.
Also Read: Rs 25 Lakh Goal: How Much Should Salaried Employees Invest Monthly?
