A 63% surge in ₹10 crore earners in India: Here’s how you can reach your first crore

The number of Indians earning more than ₹10 crore annually has surged by an impressive 63% over the past five years, according to a recent report by Centrum Institutional Research. With approximately 31,800 individuals now in this high-earning bracket as of FY24, the report underscores India’s expanding wealth class. Those earning over ₹5 crore annually have also seen significant growth, now numbering 58,200 with a 49% rise.

This rapid accumulation of wealth is further reflected in the total income of these high earners, which has surged by a staggering 121% compound annual growth rate (CAGR) between FY19 and FY24, reaching ₹38 lakh crore. However, only 15% of financial wealth in India is professionally managed, compared to 75% in more advanced economies. Projections show that the wealth of India’s High Net Worth Individuals (HNI) and Ultra High Net Worth Individuals (UHNI) will continue to grow, with combined financial assets expected to rise from $1.2 trillion in 2023 to $2.2 trillion by 2028.

How to reach your first crore
The idea of reaching the ₹1-crore milestone may seem daunting, but with time on your side and the power of compounding at your disposal, it’s a goal you can confidently pursue. This phase of your working life is when you earn and save for retirement, and building a substantial corpus now will ensure a comfortable future.

According to the FundsIndia Research Report, if you invest ₹30,000 per month with a 10% annual increase in contributions, you can reach your first ₹50 lakh in seven years at an assumed rate of 12%. However, the second ₹50 lakh takes only three years, and the third can be achieved in just two years.

This demonstrates the powerful effect of compounding and increasing your contributions every year. By the 19th year, you could amass a corpus of ₹5 crore, with the last ₹50 lakh coming in just eight months.

Three key factors help you reach that ₹5-crore target: disciplined investing, regularly increasing your contributions, and the power of compounding. Sticking to a systematic investment plan (SIP) while adjusting your contributions to match your financial growth allows your wealth to multiply over time.

For instance, without increasing contributions by 10%, the timeline would stretch: the first ₹50 lakh would take eight years, the second would take four years, and the third would come in three years. The ₹5 crore goal would then take 24 years.

Equities, known for higher long-term returns, are a strong option through SIPs in large-cap funds, which typically yield around 12%. More time in the market allows for greater compounding, making it easier to grow your wealth after you’ve crossed the ₹1 crore mark.

While the journey to your first crore can be challenging, disciplined investing, compounding, and regular reviews of your portfolio will help you stay on course. However, remember that all investments come with risks, and returns can fluctuate, so it’s essential to monitor and adjust your strategy when needed.