As we know, no risk no gain. If you make the right investment, then at the age of 50, you can be crorepati. Investment in mutual fund can help you to fetch a good amount of return.
If you’re 30 years old and aim to accumulate ₹2 crore by the age of 50, it’s possible—provided you invest regularly and with discipline. At age 30, you have 20 years to grow your investments, which is enough to maximize the benefits of compounding. By investing regularly in the right investment instruments, you can easily reach your goals. The main goal is to accumulate Rs 2 crore by the age of 50. Starting early allows you to reap the benefits of compounding and time works in your favor.
How to get Rs 2 Crore in 20 years?
Equity mutual funds are suitable for long-term wealth creation. Balance risk and return by investing in large-cap, mid-cap, and flexi-cap funds. For example, if you start a monthly SIP of Rs 15,000, it can yield substantial growth over 20 years. With an assumed annual return of 12%, you would need to invest approximately ₹20,890 per month to accumulate ₹2 crore in 20 years. Your total investment over this period would be approximately ₹51.13 lakh, and the remaining ₹1.48 crore would come from market returns. As your income increases, increase the SIP amount by 10% every year. This is called a step-up SIP, which helps you grow your investment faster.
Review your portfolio regularly. Annual rebalancing can help you maintain the desired asset allocation and optimize returns. Control your lifestyle to allow you to invest more. Use tax-saving options like NPS and PPF, which offer benefits under Section 80C and can complement your equity investments.
Even if you start with a small SIP initially, compounding can significantly grow your investment over time. For example, even a monthly SIP of Rs 10,000 can reach nearly Rs 2 crore in 20 years, if the annual return is 12%.
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