Rs 10 crore in 15 years: Reaching financial independence requires one to set high goals and accumulate a large corpus. Reaching a major financial goal with low savings may seem impossible, but with a few disciplined steps, one can achieve the goal.
Accumulating a corpus of Rs 10 crore is a dream come true for many investors. Reaching this goal can provide the investor with the benefits of early retirement, financial independence, or the ability to do anything they want with their life.
SIPs (Systematic Investment Plans) let you invest a fixed amount regularly and benefit from the power of compounding, while EPF (Employees’ Provident Fund) offers tax-free returns (currently offering 8.25 per cent per annum) along with employer contributions, making it a reliable low-risk investment.
Reaching Rs 10 crore in 15 years requires aggressive yet calculated investing. To illustrate, here’s a scenario based on a monthly basic salary of Rs 5 lakh and an assumed annual return of 12 per cent. These calculations show how disciplined SIPs and EPF contributions could help you achieve this ambitious goal.
EPF calculation conditions
Thus, in total, making an estimated corpus of Rs 9.91 crore. For mid-career professionals who have already accumulated a substantial EPF corpus, say, around Rs 50 lakh, the required basic salary can be slightly lower. At the same time, gradually increasing SIP contributions can help them reach their Rs 10 crore goal.
In fact, for people in their mid-30s who earn a monthly income between Rs 3 and Rs 5 lakhs, accumulating a corpus of Rs 10 crores in 15 years may be achievable.
To accumulate this amount, one would need to be financially disciplined over a long period, which can be a difficult task for many people.
It requires being disciplined and living below one’s means to be able to save and invest more. But with a good EPF foundation and a good SIP plan, this ambitious milestone can be achieved.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
