Are you 30-40 years Old? Here’s How You Can Build Rs 10 Crore Corpus in 20 Years!

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Often a lot of investors and financial advisors tell us how if we would have invested in our 20s or at least by our late 20s, we would have a huge opportunity to build a massive corpus before we retire. However, except a small proportion most individuals realize the importance of investment only in their mid to late 30s (even if we are well versed with the significance of savings through FDs etc quite early in life).

Interestingly, even if you are 40 today you can build Rs 10 crore corpus in 20 years or less. Here we tell you how –

Let us do a simple Math,

10 crores might sound like a daunting task but a financial target comes down to three things –

  1. The starting capital or the initial investment
  2. The annual returns
  3. The duration

So, one way of looking at this 10-crore target is to figure out the initial capital one needs and the annual returns one needs to achieve it over the next 20 years.

For example, if you have,

Rs. 10 lakhs as an investment surplus

Then an Annual Returns of 26% in 20-years’ time, will let you achieve the target of Rs. 10 crores.

And that’s it! It is as simple Math as that!

Similarly, if you have 25 years instead of 20 and you have half the amount i.e 5 lakhs then too you can achieve a target of Rs 10 crores with an annual return of just 24% – no rocket science, simply a mathematical calculation!

And if you have 30 years then too you can achieve the 10-crore target with an annual return of just 19.5%

However, in order to have that surplus amount we have to make use of what we already have by putting it in better performing instruments. For 40 years old, accumulating Rs. 25 lakhs through various instruments and then using it as an investment surplus might be possible and if yes, they can easily achieve the target of Rs. 10 crores with 20.3% annual interest.

Now, I’m sure you would be wondering how on earth can a person achieve the target of 20-26% annual returns every year consistently for the next 20 years?

Skeptics would even say that’s almost impossible. However, it might be difficult and mostly impossible but if history is our guide, then there are good number of Indian funds and portfolios which have achieved a CAGR of over 20% in the last 19 years and these are regular plans.

Now if you think 20% annual returns is achievable and you can attain the target of Rs. 10 crores in 20 years, the million-dollar question running in your head will be,

Also Read: Here’s How Mutual Fund Calculator can Help in Planning MF Investments

How do you get the Initial Investment of Rs 25 lakh to reach the Rs 10 Crore figure before your retirement?

Well, you need to first start diverting your money from the instruments that give only 5 to 7% of annual returns (PPF, FDs and other policies). Move your PPF amount (post the 15-year lock in period) and put into good use perhaps into an ELSS account that is likely to give better returns in the next 20 years in addition to 80C tax benefits.

In addition to PPF, another source of income that you can put good use to is the annual bonus that most salaried person get once in a year. Irrespective of the amount it should never be ignored because every bit counts. Besides this, you can also count in the FDs and other such instruments you might think of breaking.

The point is to look at what you have and dedicate a lump sum amount that can build Rs. 10 crore corpus in 20 years or a sum close to that.

Besides ELSS you can also invest the amount with fund managers and portfolio managers that have a proven record of achieving more than 20% annual returns through stock trading. After all, over the long term, equity does a lot better than debt. If you are already into stock market trading and earning an annual return of 25-30%, you are ought to reach the figure with your disciplined trading.

Also Read: 11 Top Dividend Stocks Whose Dividend Yield Is More than FD Interest Rates

Alternatively, you can Build Rs 10 Crore corpus in 30 Years too through monthly discipline investing

Yes, that’s right. Through SIP that is systematic investment plan investors can easily build a corpus of 10 crore in 30 years by following the 15-15-30 rule i.e., contributing a fixed amount of Rs. 15,000 every month for 30 years at an annual return of 15%. (Which going by the Indian markets is easily achievable if we see the past record of 42 years) That’s the power of compounding!

Or if you want to simply become a crorepati you can go with a 15-15-15 rule and achieve Rs 1 crore target in 15 years for 15,000 monthly investments at an annual return of 15%

Not interested in SIP? Look out for stock market portfolio managers who can reach the above target in the given time through their model portfolios and other opportunities.

These are some of the ways you can build Rs 10 Crore corpus in 20 Years, 30 years either through a fixed lump sum or through dedicating a fixed monthly income for good years.

Also Read: 6 Steps That Can Help You to Manifest Money Fast

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About Deepti Verma 337 Articles
Deepti Verma is a Political/Social Writer with an opinion on almost everything! Follow @universal_rover