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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 1/14
Can I Start With Rs 5 Lakh And Reach Rs 1Crore In 10 Years?by Sanjiv Singhal 24 Comments ★ Q & A
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 2/14
Q: My Financial goal is Rs 1 Crore in 10 years and I am planning to do this by
investing an initial amount of Rs 5 Lakh through mutual funds. With India booming
and great scope for foreign investments ahead in the coming years, I would
assume an average annual returns of 25% or more in mutual funds.
Can I achieve my target with this planning?
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 3/14
If not, please let me know the capital amount needed to achieve my target
considering the current economic scenario and performance of the index.
A: You can reach your target, but your plan requires some modification.
First of all, we believe that the correct expectation for long term return in equity funds
is 14-16% per annum. Markets can be volatile in the short term and thus reliably correct
returns tend to be in the 14-16% range rather than a best case range of 25% or more.
Good actively managed equity funds tend to do better, on average, than the index.
Having understood returns, you should look at more likely scenarios rather than best
case scenarios to reach financial goals with greater confidence.
To achieve Rs 1 Crore in 10 years, you will have to start with more than Rs 5 Lakh,
approximately Rs 27 Lakh. Alternatively, start with the money you have and invest
more money every year.
The alternate approach we would look at is to:
#1. Start with Rs 5 Lakh
#2. Start investing an additional Rs 20,000 every month so you invest a total of Rs 2.4
Lakh at the end of the first year.
#3. Increase the amount you save by 15% every year, so the investment amount
07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 4/14
changes to Rs 23,000 per month from the second year. This investment figure keeps
on going up for the rest of the duration. You are also likely to receive an increment
each year which can help you raise your investment capital each year.
The end result should be the same as starting with a higher capital amount of Rs 27
Lakh. Assuming that fund returns are in the 14-16 % range, you should be able to
reach your goal of Rs 1 Crore by the end of 10 years.
Here is a calculator where you can check how much you need to invest in 10 years to
reach a particular corpus. You only need to add, in the relevant cells, your initial
investment, your monthly investment figure, and by what percentage you intend to
increase your monthly investment each year.
You may also like to read the following related posts:
1. A Financial Plan That Works For Everyone
2. How Should I Invest A Large Sum? All At Once Or Over Few Months
3. 6 Investing Lessons from the Richest Man in the World- Warren Buffett
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 5/14
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 6/14
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• Reply •
Amit Sarkar • a month ago
Annual Salary: 10 lakhs...
Around 1.5 lakhs will be deducted for taxes...
At least 50k gone for PF.
Home loans, car loans and in most of the cases, education loan.
Along with other expenses like food, medicals etc. you still think 5 lakhs along with additional 2.4 lakhs
can be saved??? Hilarious
Now about next year, salary will increase but so will the expenses due to inflation. The average hike given
by the company is 10% to be very optimistic... So from that 1k per month and not to mention, the tax will
increase as well. This takes the person to next tax bracket which doubles the tax to be paid...
6△ ▽
Sameer Sood • a month ago> Amit Sarkar
You have to be a real pessimist, ever heard of a term job change? The article is realistic, there is
no magic wand to make you crorepati while you sit relaxing in your chair shitting on the world.
Recommend 8
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 7/14
• Reply • 4△ ▽
• Reply •
Amit Sarkar • a month ago> Sameer Sood
Pessimist??? Open your eyes and see the reality... All the break-up has been given...
Kindly throw some light on your stupid calculation about how to save 7.4 lakhs out of 10
lakh salary in a year... Then think about next year...
Not everyone is dumb enough to switch their jobs every year...
And by the way... Sitting in chair and relaxing will save you more rather than going out and
spending money...
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• Reply •
Bond Lady • a month ago> Amit Sarkar
There is no way the person in question can save 20,000 every month and invest
etc. Amit Sarkar is right on this. (unless hes in tier 4 city etc).
But the bigger points...1 crore after 10 years is a paltry amount. You can't even
arrange a party with 1 crore , 10 years hence. Thats gotto be the major worry.
1△ ▽
• Reply •
Hemant Kshirsagar • a month ago> Amit Sarkar
Really!! Amit is right...
This is the most bull shit stuff I have heard... What about the inflation rate of the currency?
1△ ▽
• Reply •
Rajesh Bhatia • a month ago> Amit Sarkar
5 lakh is lumpsum one time investment.............while 2.4 lakh per annum is sum total of monthly
SIP...............THAT SHOULD BE MANAGEABLE................
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Rajesh Bhatia • a month ago> Rajesh Bhatia
he mentions that he saves 3 lakhs per year whether ALL of it should go to equity mutual
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 8/14
• Reply •
he mentions that he saves 3 lakhs per year whether ALL of it should go to equity mutual
funds..............?
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• Reply •
Himansu S M • 3 months ago
The answer is misleading - The question was can 5 L grow into 1 Cr in ten years? The answer is NO
because it requires 35% return annually compounded. No MF has given that return continuously for 10
yrs. Instead of that the answer suggests to increase it successively to achieve the target. Yes 27 L can
grow into 1 Cr in ten yrs if the return is 14% continuously for 10 yrs. It is possible. The bottom line is that
the answer is incorrect for the given question. Thanks!
1△ ▽
• Reply •
ekamber • 7 days ago> Himansu S M
You are very right Himansu ji. The answer I expected.
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• Reply •
scripboxblog • 3 months agoMod > Himansu S M
Hi Himansu,
Here is an excel calculator you can use to calculate returns after 10 years, depending on initial
starting amount and monthly investments - http://bit.ly/investment-retur...
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• Reply •
ekamber • 7 days ago> scripboxblog
scripbox blog, please be honest and sincere in anwering to reatain the credibility, if yes
give answer like that if no give answer like that by giving much more than that you only
rendering dis-service, my feelings, left to you
△ ▽
scripboxblog • 3 months agoMod > Himansu S M
While you're right, the objective of this blog is to provide our readers with a practical approach to
wealth creation.
Our answer therefore addresses the intent behind the question. The goal is to achieve Rs 1 Cr
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct... 9/14
• Reply •
Our answer therefore addresses the intent behind the question. The goal is to achieve Rs 1 Cr
and if you cannot achieve it simply by investing Rs 5 Lakhs one time, then we must find out how
we can get there. The assumptions we make are all reasonable for the asset class (equity) and
for someone who will be earning for that 10 year period.
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• Reply •
ekamber • 7 days ago> scripboxblog
in this answer under response the assumptions are really senseless, baseless, you can
always resort to justifying
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• Reply •
ekamber • 7 days ago
crude joke in the form of an answer, expecting a person to incrtease his investment by more than 400%
to achieve the target is just making mockery of the person, not in the right spirit
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• Reply •
srikar • 9 days ago
i think done a tiffin,biryani bussines.... in 5 to 6 areas so with in a 3years we get upto 80 lakhs...
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• Reply •
WinNew • 9 days ago
It would be nice to know how many funds have achieved this 14-15% returns, even on a long term basis,
and how many did not. Most MF Managers, just dump your money into the market when they have your
money, irrespective of valuations. And the reverse, on redemptions.
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Prigafinalyst • 10 days ago
Considering the above salary and saving figures, the amount in 10 years
cannot be achieved any more than 45 Lacs. Consider Initial one time
investment of 2.5 lacs (some from previous savings), monthly investment
Rs. 10,000 (max that can be invested as per current expenses and
savings) and increase in investment per year cannot be more than 10%
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
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• Reply •
(As per expected salary rise and inflation in upcoming years). This will
be 45 lacs in 10 years at 14% returns.
What are the risks, taxes on maturity, mid term exit charges or impact etc.. ?
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• Reply •
Prince • 10 days ago
Good class room lesson. Uncertainty is a part of life and money game. There is nothing wrong in planning
for cash bonanza but some where a simple plan for minimum fall back should be there. Every one should
plan for good future.
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• Reply •
D V Khatri • 16 days ago
Hi, my suggestion is to leave this job and earn some good degree from any good foreign insitutions. Then
you will earn more and save more. Ten lacs in a year is very tiny amount, now a days " best of luck".
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• Reply •
Chandan • 17 days ago
There is no magic in the SIP as well. I have experience I got the same amount invested in 3 years. There
are other deductions every month.
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• Reply •
aditya mohata • a month ago
like the return on CEAT TYRES rs 90 stock 1300 force motor rs600 to 3000 eicher 2500 to 22000 and
many more
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• Reply •
aditya mohata • a month ago
it is better to invest in stocks regularly and then hedge it and one can make easily 20-30% on investment
and in 5-10 yrs it can deliver 6-8 times return too
△ ▽
Tridip Sarma • a month ago
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07/11/2015 Can I start with Rs 5 Lakh and reach Rs 1 Crore in 10 years? - scripbox.com
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• Reply •
Tridip Sarma • a month ago
What is the percentage return of scripbox annually since its inception?
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• Reply •
ekamber • 7 days ago> Tridip Sarma
years will pass, you will wait for the answer
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