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Saving ₹5 crore in 10 years may sound like a challenging goal, but it’s achievable with a disciplined investment plan. To hit this target, choosing the right investment option is critical, one that offers high returns and stability over the long term. Equity mutual funds through SIPs (Systematic Investment Plans) are the best way to accumulate such wealth for most investors. Let’s explore how you can build a ₹5 crore corpus step by step.
Equity mutual funds are ideal for long-term wealth creation because they offer higher returns than other savings tools like fixed deposits or PPF. These funds invest in stocks, providing exposure to the growth potential of the market. Despite short-term market volatility, equity funds tend to deliver better returns over a 10-15 year horizon.
SIPs allow investors to invest small amounts regularly and benefit from rupee cost averaging—buying more units when the market dips, which lowers the overall investment cost. Compounding also plays a crucial role, as reinvested earnings generate additional growth over time.
Your monthly SIP amount will depend on the annual return you expect. Here’s an estimate based on different return scenarios:
Expected Annual Return | Monthly SIP Amount |
10% | ₹2.42 lakh |
12% | ₹2.16 lakh |
14% | ₹1.91 lakh |
To achieve your target, it’s crucial to invest consistently every month for 10 years without interruption. Even missing a few installments could affect your goal significantly.
Investing in equity mutual funds through SIPs requires discipline and patience, but it’s a proven way to accumulate wealth. Stick to your investment plan, and avoid pulling out funds in response to market volatility. Whether your goal is ₹5 crore or even higher, a well-planned SIP strategy can help you achieve financial freedom.
By following these steps, you can build a comfortable retirement corpus while ensuring peace of mind. Start your SIP journey today and enjoy a financially independent future!