Becoming a crorepati is one of the aspirations that many harbor. One quick browse on the internet and you’ll find tons of queries like how to make Rs 1 crore from mutual funds, how to make Rs 1 crore in 10 years, Is it possible to make Rs 1 crore in 10 years from mutual funds, and more. But what if we say, it is entirely possible, and that too via the simple investing method. Yes, we’re talking about Systematic Investment Planning(SIP) in mutual funds, via which residents and Non-Resident Indians(NRI) and Overseas Citizens of India(OCIs) can easily become crorepati in just 10 years. Read along to find out how.
How to make Rs 1 crore in 10 years via SIP?
Systematic Investment Plan (SIP) in mutual funds is a form of investment where the investor can choose to invest a fixed amount(starting as low as Rs 500) in the mutual fund scheme in a periodical manner, i.e. weekly, monthly, or quarterly. This is in stark contrast to the lump sum investment where the investor has to invest a large sum of money at once.
Also read: Best SIP to Invest in 2024 – Top 10 SIP Mutual Fund Plans for NRIs/OCIs
How can SIP make 1 crore rupees in 10 years?
Investing via SIPs in mutual funds allows you to avail the power of compounding. The term power on compounding works on the principle where the small investments made on a regular basis grow to become a significant amount in the longer run. What actually happens during compounding is that your interest earned during the previous compounding period will in turn earn interest during the next term. This allows your invested money to make more money. The power of compounding is one of the very foundations of investment principles and has helped many investors build wealth in the long run.
Also read: How to Save 1 crore with a Monthly Investment of Rs 5000?
Where to invest to earn 1 crore rupees in 10 years?
There are various mutual fund schemes offered to investors across equity, debt, hybrid, and more options. The returns among these types vary as equity mutual funds focus on investing in equity stocks while debt mutual funds invest in fixed-return investment options like government securities, bonds, corporate debt securities, and other money market instruments. Similarly, hybrid focuses on a mix of debt and equity structure.
Taking into account historical performance in the last 15 years, the NIFTY 100 Index has delivered over 12.3% average annual return. Though mutual fund returns are dependent on market performance, past performance can give a brief idea of the nature of returns. Equity mutual funds tend to provide higher returns than debt mutual funds though they also have higher risk factors.
Investors have the option to invest in a variety of equity mutual funds based on their risk appetite and investment goals. Below mentioned are some of the types of equity mutual funds that users can choose from:
- Index Fund
- Flexi-Cap Fund
- Small Cap Fund
- Large-Cap Fund
- Equity-Oriented Hybrid Fund
Also read: What is the 15x15x15 Rule In Mutual Funds for NRIs?
How much should you invest in SIP to make Rs 1 crore in 10 years?
How much do you need to invest every month in SIP to make 1 crore rupees in 10 years is dependent on the annual returns that you’ll be expecting from the investment. Based on the historical performance as aforementioned, the NIFTY 100 Index has provided 12.3% average annual return for the past 15 years. Once you know the expected returns, you can get a better idea of the SIP amount needed to make 1 crore in 10 years.
For better understanding, we here take 6 different assumed annual returns and compute the SIP accordingly to reach 1 crore rupees. Here’s a tabular representation of it:
| SIP Amount | Expected Return | Period | Total Investment | Corpus in 10 years |
| 48500 | 10% | 10 years | 58,20,000 | 1,00,17,773 |
| 45700 | 11% | 10 years | 54,84,000 | 1,00,07,719 |
| 43100 | 12% | 10 years | 51,72,000 | 1,00,13,814 |
| 40600 | 13% | 10 years | 48,72,000 | 1,00,15,234 |
| 38200 | 14% | 10 years | 45,84,000 | 1,00,11,891 |
| 35900 | 15% | 10 years | 43,08,000 | 1,00,03,796 |
Also read: Top 5 Tips for NRIs to Pick a Winning Mutual Fund
Wrapping Up
Making 1 crore in 10 years through SIPs is an attainable goal that can secure your financial future. With the power of compounding, careful fund selection, and a disciplined approach, you can turn your dreams into reality. Start early, stay committed, and enjoy the journey to financial success with the right investment strategy and time in the market. Remember, it’s not about timing the market but time in the market that helps in building wealth in the long run.
Invest in NRI Mutual Funds with SBNRI
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SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.
FAQs
What is the full form of SIP?
- SIP full form is Systematic Investment Plan. SIP in mutual funds is a form of investment where the investor can choose to invest a fixed amount(starting as low as Rs 500) in the mutual fund scheme in a periodical manner, i.e. weekly, monthly, or quarterly.
How to make Rs 1 crore wealth from mutual funds in 10 years?
- You can invest in a monthly SIP of Rs 43,100 for 10 years at an expected return of 12% to generate Rs 1 crore corpus at the end of 10 years. Based on the historical performance as aforementioned, the NIFTY 100 Index has provided 12.3% average annual return for the past 15 years.
How to make Rs 1 crore wealth from mutual funds in 15 years?
- You can use the rule of 15x15x15 to make a wealth of Rs 1 crore from mutual funds in 15 years. With this rule of 15x15x15, you can invest Rs 15,000 a month for 15 years at an expected return of 15% and can generate Rs 1 crore (Rs 1.01 crore approx.) after 15 years.
Can I earn Rs 1 crore from mutual funds in 10 years?
- Yes, you can earn Rs 1 crore from mutual funds in 10 years by investing in SIP on a monthly basis and become a crorepati from mutual funds.
Can NRIs become crorepati from mutual funds in 10 years?
- Yes, NRIs can invest in various mutual fund schemes in India. If an NRI invests in a monthly SIP of Rs 43,100 over 10 years at an expected return of 12%, they will have a corpus of Rs 1 crore at the end of 10 years. Based on the historical performance as aforementioned, the NIFTY 100 Index has provided 12.3% average annual return for the past 15 years.
Can NRIs become crorepati from mutual funds in 15 years?
- Yes, NRIs can become crorepati from mutual funds in 15 years by following the rule of 15x15x15 and investing Rs 15000 a month in SIP for 15 years with an expected rate of return of 15%, then they will become crorepati after 15 years with a wealth corpus of Rs 1 crore.
Is SIP better than FD for NRI?
- SIP performance based on the historical data showcases at least 2x returns than Fixed deposit. Investing in SIP as NRI can help you beat inflation and generate high returns in comparison to the traditional FD/RD scheme.
Can NRI invest in mutual funds in India?
- Yes. NRI can invest in mutual funds in India using their NRE/NRO bank account once they complete their Mutual Fund KYC.
How can NRI buy mutual funds in India?
- NRI investors can purchase or sell mutual funds in India once they complete their Mutual Fund KYC and have an operating NRO/NRE Bank account.
