Investment Tips: If you want 1 crore rupees in 15 years, how much should you invest each month? Understand the complete calculation.

If you want to build a corpus of 1 crore rupees in 15 years, the investment amount is determined by the returns you expect. If you earn a 9 per cent annual return, you will need to make a monthly SIP of approximately 26,426 rupees.

Investment Tips: Previously, people invested in fixed deposits or public provident funds to secure their future after retirement. However, nowadays, people are moving away from fixed deposits and public provident funds and turning to mutual funds. The main reason for this is the flexible investment options offered by mutual funds and the easy convenience of SIPs. Many people also want to build a strong corpus over a fixed period of time. So, if you also want to build a corpus of 1 crore rupees in the future, investing in mutual funds through SIPs is considered the easiest and most sensible way.

The specialty of SIPs is that you can start with a small amount and build a large corpus over the long term. The earlier you start investing, the faster compounding works, and your corpus grows. So, let's explain how much you need to invest each month if you want to have ₹1 crore in 15 years, and what the full calculation is.

How much will you need to invest to earn ₹1 crore in 15 years?

If your goal is to build a corpus of ₹1 crore in 15 years, the investment amount depends on your returns. If you earn a 9 percent annual return, you'll need to make a monthly SIP of approximately ₹26,426. At a 10 percent return, this monthly SIP reduces to ₹24,127. At an 11 percent return, you'll need to invest ₹21,993 per month. At a 12 percent annual return, an SIP of just ₹26,016 per month is considered sufficient to achieve a target of ₹1 crore. The higher the returns you earn through SIPs, the smaller the amount you can achieve your target.

Short-term investments are required.

If someone wants to accumulate Rs 1 crore in a short period of time, such as 5 years, the SIP amount becomes significantly higher. To build a corpus of Rs 1 crore in 5 years at a 7% return, one would need to invest Rs 1.39 lakh per month. Even at a 12% return, achieving the target in 5 years would require a monthly SIP of Rs 1.14 lakh. This clearly shows that building a large corpus in a short period of time can be difficult and expensive.

The Power of Compounding Changes the Game

Compounding means that the returns on your investments automatically generate further returns. This is why even a small investment can become a substantial fund over time. The famous 15x15x15 rule suggests that a monthly SIP of ₹15,000 and a 15% annual return can lead to a corpus of approximately ₹1 crore (approximately ₹10 million) in 15 years. This same corpus could reach approximately ₹10 crore (approximately ₹100 million) if invested for another 15 years.