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This Diwali One SIP at a Time to Become Crorepati!

Indian festivities are celebrated with much grandeur and gaiety. One of the most popular festivals of India, Diwali, is associated with prosperity and wealth. Every one of us wishes to acquire as much wealth as possible. However, with the rise in expenditure, savings and acquisition of wealth remain a far-fetched dream. But hey, in this article let us tell you how a SIP of a small amount can make you a Crorepati!
Diwali-2026

The festival of Diwali is round the corner and the festival of lights is known to bring prosperity and blessings to the goddess of wealth Lakshmi. The Hindu goddess of prosperity Lakshmi is invoked on the holiday of Diwali. Hindu households perform a special prayer ritual known as a puja on Diwali night to welcome her into their homes in the hopes of receiving good fortune. Additionally, because Diwali coincides with the Hindu New Year, it also represents the start of a new fiscal year for a large portion of India's trade and commercial community. As a result, some important Diwali customs are money inclined; it is said to be a particularly lucky time to buy new things, make new investments, go shopping, and even gamble.

In the tough times of rising inflation, and ever-rising expenditure, these money-related rituals can be quite difficult. These days even trying to save can be cumbersome, let alone big investments or gambling. However, we might have just the right investment plan for people who still want to acquire big. Long-term investment with a small SIP can just be the right thing if you are looking to become a crorepati.

If experts are to be believed, a small sum regularly won't assist you to achieve your long-term objectives. For this reason, a lot of people still put off making investments indefinitely.

They will be shocked to learn that by starting a SIP of Rs. 5000 per month, they may become a Crorepati for 20 years if they try to compare it. SIPs are among the most prudent investment strategies for growing a corpus by making small initial investments. Rupee cost averaging also lessens the effect of market changes on your SIP investment.

A SIP of Rs. 5000 a Month 

If equity funds' returns to those of other asset classes are compared, Equity funds stand out to be superior. Although there is more market risk involved. But if you invest for a longer period—say, 10 to 20 years—you will reap the benefits of larger returns. Additionally, several of the funds have a track record of providing returns that outpace inflation and let you achieve the majority of your long-term objectives, including retirement, homeownership, marriage, and raising children.

Additionally, it is important to start investing a small amount in equity funds each month if you want to reach your long-term objectives within the allotted period. Additionally, if you engage in Equity Linked Savings Schemes (ELSS), you can take advantage of tax advantages on your investment.

How will a SIP of Rs. 5000 a Month yield Rs. 1 Crore?

Start a SIP in equity mutual funds right now if you have a spare Rs 5,000 each month. You might build a corpus of Rs 1 crore in 25.5 years if your portfolio can provide an annual return of 12%. 

Now in case you wish to attain the 1 crore target in lesser years, the above-stated stagnant SIP method might not be ideal. In such a case, step-up-SIP will be a better option. Let's say you have the potential to increase your SIP allocation by 10% annually. Thus, your SIP will be Rs 5,000 per month for the first year, Rs 5,500 (Rs 5,000 + 10% of Rs 5,000) for the second year, Rs 6,050 (Rs 5,500 + 10% of Rs 5,500) for the third year, and so on. With this, you would be able to reach your 21-year target corpus of Rs. 1 core. 

The complete details of the SIP amount and year-by-year value are given below.

(Source: https://economictimes.indiatimes.com/mf/analysis/how-to-make-rs-1-crore-by-investing-just-rs-5000-every-month/articleshow/58257836.cms?from=mdr)

Why should you choose to do a SIP? 

We give you various reasons why you should choose to do a SIP below:

  • You can start small with SIP and watch your money increase over time. An SIP not only makes tracking easy and convenient but also increase your savings.
  • Rupee Cost Averaging, which allows you to buy more units when the market is low and fewer units when the market is high, is what makes SIP special. This is a result of the fundamental SIP function, which allows you to buy more at every market decline, cutting your investing costs and raising returns. 
  • Investing with SIP is quite flexible. With SIP, one can avoid long-term obligations like investing in things like Unit Linked Insurance Plans or Public Provident Funds. Due to their open-ended nature and flexibility to be withdrawn at any moment, these funds do not have a fixed tenure.  You can either take a full or partial loss on your investment, depending on your preference. Additionally variable is the investment amount; it can be raised or lowered. Just keep in mind that building wealth requires having a long investing horizon.
  • SIP offers twice the returns compared to conventional fixed deposits or recurring deposits. You can avoid the exaggerated costs by doing this.
  • Earning compound interest on your investments is the idea behind SIP. To put it another way, a modest sum invested over a long period yields better returns than a single investment.
  • You can withdraw your SIP Investment as a dependent fund because it is an open-ended fund with no tenure.

The Takeaway

Accumulating a wealth of Rs. 1 Crore is very much possible even if we start less. However, the key to levelling up on being a Crorepati is a long-term investment and the attribute of patience. As you can see, even with a small start, you can eventually expand your SIP by a specific amount. Make sure, before beginning your SIP of Rs. 5,000 per month, that you select a fund house that permits you to increase your SIP contribution each year. SIP online calculators can also be used to determine how much and by what % to increase payments to accumulate the desired corpus over time.

So this was all about reaching your target of Rs. 1 Crore this Diwali. On this special occasion take your first step towards your big goal of yours and start investing. 

At Glide Invest, we are committed to helping you invest in your goals with Goal-Based Investing, get higher returns than standard mutual funds with Smart Portfolios, or invest in your favourite funds with Custom Portfolio. Download the Glide Invest App now to get started!

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