Can I become a Crorepati with my Savings?



Hello Fpguru,


I have just graduated & started with my career recently. I can invest Rs.10000 every month this financial year. There will be an increment of Rs.5000 in each successive year i.e. Rs.15000 every month in next year,Rs.20000 every month in 3rd year, so on and so forth. As per my calculations, ideal time for this type of incremental investment to reach Rs 1 Crore mark would be 7-8 years. My questions is ; Is my goal and ideal time frame to achieve the same is realistic? Also, where do I invest my savings, to reach my target goal?




Aakash Chandak





Dear Aakash,

Thanks for visiting our website & asking us a question! It is very nice to know you are saving money from the very beginning of your career. Saving is a healthy habit which will reap benefits in the long run.

Your time frame as mentioned is 7-8 years. This is a moderately long period. For the said term equity investments would form a major part of your investments. At the same time, debt should also form some part of your portfolio. An Asset allocation of 85%-15% or 80%-20% between equity & debt would be ideal.

Keeping in mind the above allocation we may assume an annualized return of 12% p.a. for the period. This is not too optimistic nor too pessimistic, but is keeping historical returns in mind. With your investments at Rs 10,000/- p.m. & growing also by Rs 5,000/- p.m. every year & returns at 12%, you investments will stand at Rs 39 lacs approx in 8 years.

To achieve the Rs 1 crore mark in 8 years, you need to start saving more now. If you save Rs 35,000/- p.m. & increase monthly savings by Rs 10,000/- every year, you can achieve the same in 8 years.

If you intend to stick to the current plan, you will achieve the Rs 1 crore mark in around 12.5 years. That is in twelve & half years approx, you will be a crorepati!!
It’s nice to know that you want to acquire wealth. However it is also important to chalk out your life goals & the finances required to fulfill them. We suggest you to keep the same in mind too while investing. The best way to achieve a comprehensive & holistic view of your finances is through a financial plan!

Hope this solves your query!


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