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1 Crore Investment Plan: How To Make 1 Crore from Mutual Fund Investments

In this article will discuss how to make your first one crore with appropriate asset allocation and mutual fund SIPs. Also, how a step-up SIP will help you reach your financial goal of Rs. 1 crore faster than a regular SIP.
How to Make Your First 1 Crore

“Kaun Banega Crorepati” is one of the most popular shows on Indian television. The feelings and emotions of crores of people are attached to the one crore number. This shows the impact of the magic number of 1 crore. In this article, we will discuss SIP & step-up SIP can help you to make your first one crore

Using budgeting to save money

To start your one-crore journey, you first need to start saving money to invest it. To save money, you can follow one of the budgeting systems.

1. 50/30/20 - Budgeting system

You can get started with the 50/30/20 budgeting system. As per this method, you can divide and spend your monthly income into three broad categories:

  • 50% on needs (essential or non-negotiable spending)
  • 30% on wants (discretionary spending)
  • 20% on savings and investments (for an emergency fund, life and health insurance, financial goals, etc.)

With this budgeting method, you will have 20% of your income available for investing in mutual fund systematic investment plans (SIPs). These investments will help you to start your journey towards making your first one crore.

2. Pay yourself first - budgeting system.

Once you get comfortable with the 50/30/20 budgeting system, you can consider shifting to the pay yourself first budgeting system. As per this method, you first need to save and invest towards your financial goals. The remaining monthly income can then be used for regular monthly expenses. As you will have more money available for investing, this budgeting method will accelerate your journey towards making your first one crore.

Invest the saved money to make your first one crore

By following the budgeting system, you have saved the required amount. Now, you need to invest it in realising your financial goal of Rs. 1 crore. The sooner you start investing, the lower the amount that you will have to invest. An early start allows you to benefit from the magic of compounding.

Let us understand how you can benefit from compounding with the help of an example. Avinash (age 25 years), Bhushan (age 30 years), and Chetan (age 35 years) want to accumulate a corpus of Rs. 1 crore by retirement (age 60 years). All three of them are investing in mutual funds and are expecting a return of 12% CAGR. Let us see how much will each of them have to invest to reach Rs. 1 crore.

Expected returnAnnual Investment
(in ₹)
Monthly Investment
(in ₹)
Avinash (age 25 years)35 years12% CAGR20,6841,724
Bhushan (age 30 years)30 years12% CAGR36,9973,083
Chetan (age 35 years)25 years12% CAGR66,9645,580

As can be seen from the above table, Ajay starts investing early. Hence, he will get the maximum benefit of compounding and will have to invest only Rs. 1,724 per month to make his first one crore. On the other hand, Bhushan starts five years later than Avinash and will have to invest almost double the amount. Finally, Chetan starts investing ten years later than Avinash and will have to invest more than three times.

Monthly SIP required to make Rs. 1 crore with expected return of 12% CAGRChetan’s SIP journey towards his first Rs. 1 crore

As can be seen in the above image, Chetan starts investing Rs. 66,964/year (Rs. 5,580/month). His investments grow at 12% CAGR. In 25 years (by retirement), he will reach his target of Rs. 1 crore. Similarly, Avinash and Bhushan will also reach their target of Rs. 1 crore by retirement.

All the above three investors will make their first one crore only on retirement. What if you want to reach the milestone earlier?

Understanding the Power of SIPs

A systematic investment plan (SIP) is a mutual fund investment strategy. Investors might invest a small sum regularly due to this.

Investing can be done weekly, monthly, quarterly, or semi-annually, depending on the investors' comfort level. Additionally, using SIP, investors can invest any amount they want. On the other hand, an investor cannot invest less than the fund's minimum investible amount.

As a result, investing in mutual funds through a systematic investment plan (SIP) is a wise choice. Furthermore, SIPs are effective because they help to reduce market volatility. You benefit from buying more fund units at a reduced price when the markets are down by continuing the SIP. You buy fewer units when the markets are rising. As a result, rupee cost averaging is obtained by investing in mutual funds through a systematic investment plan (SIP).

Years it will take to reach one crore!

In the above example, we calculated the monthly investment required to make your one crore based on the investment time horizon. What if the situation is the other way round? You want to start investing a certain amount, and you want to know the number of years it will take to make your one crore.

With the help of an example, let us understand how many years it will take for you to make your one crore depending on the SIP (systematic investment plan) amount. We will consider different scenarios (4 different SIP amounts) with an expected return of 12% CAGR and calculate the number of years it will take to make your first one crore.

Monthly SIP Amount
(in ₹)
Annual Investment
(in ₹)
Expected ReturnYears to get rich
500060,00012% CAGR26
10000120,00012% CAGR20
15000180,00012% CAGR17
20000240,00012% CAGR15

SIP of Rs. 5,000 with 12% expected returns would take 26 years to get to one crore—similarly, a SIP of Rs. 20,000 with 12% expected returns would take you to 1 crore in just 15 years. As can be seen from the above table, the higher the SIP amount that you start with, the sooner you will reach one crore, other things being constant.

Number of years to reach 1 Crore with a expected 12% CAGR with different monthly SIP amount

A step-up SIP can help you make your first one crore faster!

We have seen in the above section how a higher SIP can take you to your one crore more quickly. However, it may not be possible for everyone to start with a higher amount of SIP. In such a case, you can go for a step-up SIP.

Step-Up SIP can help you reach Rs. 10000000 goal faster

A step-up SIP allows you to increase your SIP investment amount by a specified amount at specified intervals. For example, Karan has started a monthly SIP of Rs. 5,000. He has chosen the step-up SIP option to increase his SIP amount by Rs. 1000 every year. In this case, Karan’s bank account will be debited by Rs. 5,000 every month in the first year, Rs. 6,000 every month in the second year, Rs. 7,000 every month in the third year, and so on.

A step-up SIP will help you reach your financial goal of Rs. 1 crore faster than a regular SIP.

Make a proper goal plan to reach your first one crore

On your journey to make your first one crore, you can partner with the Glide Invest App. You can set a goal for making one crore with the following steps:

  1. Create a new goal and give it a title
  2. Enter the amount as Rs. 1 crore
  3. Enter the number of years in which you wish to accumulate the money
  4. Select the annual increment in step-up SIP (10%, 15%, or 25%)
  5. Based on your risk profile, the platform will recommend you the SIP amount and the asset allocation

Before you get started, you need to know about the three critical steps of risk profiling, asset allocation, and investing:

  1. Risk profiling: Based on a few Yes/No questions, you will be classified as an aggressive, balanced, or conservative investor.
  2. Asset allocation: According to your risk profile, the platform will recommend you an asset allocation consisting of equity mutual fund, debt mutual fund, international equity mutual fund, and gold mutual fund in varying proportions.
  3. Start investing: You can go with the recommended asset allocation based on your risk profile and start investing. You can also choose from alternate suggestions based on a different risk profile and start investing. However, you should regularly review the goal plan and make the required changes, from time to time, till you reach the target of Rs. 1 crore.

The Takeaway

One might expect to see a boost in one's salary as one gets older. The amount of money saved in the early years may be little, but as one progresses up the corporate ladder, so does the amount of money saved. Also, with inflation present, the savings in a Step-Up SIP are inflation-adjusted, compensating for the currency's declining purchasing value. In such cases, Step-Up SIP comes in handy. 

One can start a SIP with an amount that is comfortable for them or that meets their needs, but choosing Step-Up SIP will help them attain their goals more quickly and without the risk of under-investing.

Start your crorepati journey today with the Glide Invest App

To make your first one-crore financial goal, start your SIPs with the Glide Invest App. Within the Glide Invest App, you can choose from various financial goals or define your own financial goals and create a SIP to achieve them. With Glide Invest, you can plan and systematically invest towards your financial goals. You will get guidance for: A personalised risk profile assessment.

  1. Identifying your financial goals
  2. Appropriate asset allocation
  3. Making a financial plan for each goal
  4. Automating the financial plan
  5. Review and analysis of your financial plan 
  6. Hand holding you till your financial goals are achieved.

To start investing towards your financial goals, download the Glide Invest App now from Google Play Store or Apple App Store and get started.


Q1: What is the SIP step-up period?

A1: Top-up SIP is another name for step-up SIP. Every year, you essentially top up your SIP by a percentage — for example, 5000 in 2015, 5000+15 per cent in 2016, and so on. You can accomplish this based on your current income, projected annual increments, and, of course, financial objectives.

Q2: Can SIP be considered Risk Free?

A2: SIP does not totally remove risk. Your mutual fund investments are expected to suffer in a sinking market. However, when compared to lump-sum investments, SIP investments will lower your losses. Similarly, SIPs do not guarantee long-term profits.

Q3: Is it possible to become rich with SIP?

A3: f you invest Rs 10,000 per month in an equity fund under a systematic investment plan (SIP) for 30 years, you will have amassed a corpus of Rs 3.53 crore. Compounding enhances your wealth and makes you wealthy.

Q4: How can I make a one-crore with SIP investment?

A4: The 15*15*15 method is the simplest approach to acquire Rs 1 crore with mutual funds. It claims that if a person invests Rs 15,000 per month for 15 years in a fund with a 15% return, they will amass Rs 1 crore.

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