The power of compounding, combined with disciplined investment, can help you achieve the dream of becoming a crorepati. Here’s how:

The Plan

• Start Early

• Example: If you’re 24 years old, invest ?50/day or ?1,500/month in a diversified mutual fund via SIP.

• Assume an Annual Return of 12%

• This is a realistic expectation for diversified mutual funds over the long term.

• Keep Investing for 36 Years

• With consistent investments, you’ll accumulate1 crore by the time you’re 60.

Illustration

Mr. ABC starts investing1,500 monthly at 24 years old:
- Investment Duration: 36 years.
- Total Investment:6,48,000 (?1,500 x 12 months x 36 years).
- Final Corpus: ?1 crore (assuming 12% annual return).

Age-Wise Investment Requirement

If you start at a different age, here’s how much you need to invest daily to reach1 crore by 60:

| Starting Age | Daily Investment (?) | Monthly Investment (?) |
|-------------------|--------------------------|-----------------------------|
| 20 years |30 |900 |
| 24 years |50 |1,500 |
| 30 years |95 |2,850 |
| 40 years |265 |7,950 |

Investment Growth Table

To understand how your money grows:

| Time Frame (Years) | Monthly Investment (?) | Returns at 12% |
|-------------------------|----------------------------|--------------------|
| 5 |1,500 |1,15,265 |
| 10 |1,500 |3,60,820 |
| 20 |1,500 |14,20,730 |
| 36 |1,500 | ?1 crore |

How to Accelerate the Process?

• Invest Higher Amounts

• Increase your SIP contribution as your income grows.

• Start Earlier

• The earlier you begin, the more time compounding has to work its magic.

• Choose High-Growth Assets

• Diversified mutual funds, equity, or stocks can provide returns of 12-18% or higher.

Summing it up

The key to becoming a crorepati lies in:
- Regular investments.
- Choosing high-return asset classes.
- Starting early to power the power of compounding.

So, when are you starting your1,500/month investment?

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