If you earn Rs 50,000 per month here's what your SIP plan should be to achieve Rs 1 cr corpus

If you are a long-term investor, investing through mutual funds is one of the best ways to achieve your financial goal. A goal of making Rs 1 crore requires a large corpus for you to invest if your tenure is for a lesser duration. It is risky too. However, if the tenure is bigger, you may require less money to invest and achieve your goal easily. This is generally because equity investments typically remain volatile when you invest for the short or medium term but can help you achieve double-digit returns when you invest for the longer term. 

Thus, achieving a goal of Rs 1 crore in 10 years would require you to invest more than investing for 20 years to achieve the same goal. 

Rajiv Bajaj, Chairman & MD of Bajaj Capital, said, "If you continue your monthly Systematic Investment Plan (SIP) with an amount of Rs 10,000 per month for the next 20 years, it will enable you to create an approximate corpus of Rs 1 crore. This calculation assumes a Compound Annual Growth Rate (CAGR) return of 12%. However, if you aim to achieve this goal within the next 10 years, you must invest Rs 43,000 per month. Given your current monthly income of Rs 50,000, this higher investment amount may not be feasible for you. Therefore, starting a monthly SIP of Rs 20,000 would be better. This way, you can utilise the remaining savings of Rs. 30,000 per month for your other expenses." 

By investing Rs 20,000 every month, you can accumulate a corpus of Rs 45 lakh in 10 years and Rs 1.84 crore in 20 years, assuming a return of 12 per cent.

Experts advise investors to increase their monthly investments in equity-oriented mutual fund schemes as their income grows. By doing so, they can reach their financial goal sooner, within approximately 13-14 years.  

Bajaj further said, “It is suggested to diversify your portfolio by allocating your monthly SIP amount equally among Kotak Multi Cap Fund, Nippon India Multi Cap Fund, HDFC Mid Cap Opportunity Fund, and Nippon India Growth Fund. This approach will ensure that your investments span across different fund categories and Asset Management Companies (AMCs). Furthermore, reviewing your portfolio at least once a year to assess its performance and make any necessary adjustments is prudent.”