One crore may not be much for people who own a large scale business but to the middle class, it is a lot of money. To some families, it could be their entire life savings. Many people dream of earning that money and wonder how to achieve it. Stocks may seem like a good bet, but they are not entirely safe and carry the risk of losses. That makes mutual funds the most obvious choice for most investors.
In this article we have written a special article for such investors who want to earn 1 crore faster . We will show you how long it takes to build a Rs 1 crore corpus. Using an analysis of over 200 mutual funds, we illustrate how different annual returns 12%, 15%, 18%, and 20% can impact both the growth and the time required to reach this goal.
We will use a realistic and achievable scenario of investing Rs 10,000 monthly in a SIP to clearly demonstrate the point.
What You Need to Know Before You Jump in?
To understand what returns are realistic, data from around 190 mutual funds with a 10-year SIP history was analysed. The results give a reality check.
More than half of these funds delivered over 12% annualised SIP returns. Around 82 funds managed to cross 15%. Only 48 funds delivered 18% or more, and just about 20 funds crossed the 20% mark.
In Short:
- 12% to 15% returns are quite achievable over long periods.
- 15% to 18% returns are excellent.
- 20% or higher returns are rare, and come with high ups and downs.
This background is important before thinking about how to earn 1 crore.
Why is SIP a logical choice to Earn 1 Crore?
The beauty of a SIP is that it is unassuming. It stays in the background, running smoothly, while you toil hard to make a living. Regardless of market levels, all you have to do is invest a fixed amount every month. If the market falls, your SIP buys more units, and when the rise comes, those SIP investments generate profits. Most of the heavy lifting over time is done by compounding; all you need to do is stay invested.
How Long Does It Take to Reach Rs 1 Crore with a Rs 10,000 SIP?
Let’s now see how long it takes to build a Rs 1 crore corpus with a Rs 10,000 monthly SIP, at different return levels.
12% SIP returns
If the annualised returns are around 12%, which, by the way, is not uncommon and is in fact very reasonable for diversified equity funds in the long term:
- Monthly SIP: Rs 10,000
- Total investment: Rs 24 lakh
- Estimated returns: Rs 75.9 lakh
- Total corpus: Rs 1 crore
- Time required: 20 years
It may take longer, but it is still a very achievable path for long-term equity investors.
If you are an investor who prefers stability and a disciplined investment plan with a lower risk profile, this scenario is perfect for you. It may take time, but it is still a very achievable path for long-term equity investors.
15% SIP returns
Returns of around 15% are considered excellent but realistic in equity mutual funds, especially over long periods.
- Monthly SIP: Rs 10,000
- Total investment: Rs 21.6 lakh
- Estimated returns: Rs 88.8 lakh
- Total corpus: Rs 1.10 crore
- Time required: 18 years
Just a 3% increase in returns cuts two full years from your journey to Rs 1 crore, this right here is the true power of compounding.
18% SIP returns
Only a small set of funds which consists of mostly mid-cap, small-cap and thematic funds have managed to sustain 18%+ SIP returns over long periods.
- Monthly SIP: Rs 10,000
- Total investment: Rs 19.2 lakh
- Estimated returns: Rs 92.0 lakh
- Total corpus: Rs 1.11 crore
- Time required: 16 years
This path can build wealth faster, but it also comes with sharper ups and downs, requiring patience and strong risk tolerance.
20% SIP returns: exceptional, but rare
Returns of 20% or more look attractive on paper, but history shows that very few funds achieve this consistently and volatility is high.
- Monthly SIP: Rs 10,000
- Total investment: Rs 18 lakh
- Estimated returns: Rs 95.4 lakh
- Total corpus: Rs 1.13 crore
- Time required: 15 years
While the timeline is short, investors should remember that chasing such returns increases risk significantly.
What investors should really understand
When you look at the numbers closely, one thing becomes very clear.
Most mutual funds do not deliver extraordinary returns, and that is okay. Over the last 10 years, more than half the funds managed to give over 12% SIP returns. Around four out of ten crossed the 15% mark. Only a small group went beyond 18%, and just a handful delivered 20% or more.
Conclusion:
The real lesson is not to chase unusually high returns, but to be patient and realistic. That is what actually builds long-term wealth. A disciplined investor investing Rs 10,000 through a SIP can be answer to the question earn 1 crore faster. Do you want to become crorepathi? Then start planning your investment with profitszonemfd!