How Long Will It Take to Earnings Rs. 5 Crore with Monthly Investments in Mutual Funds?

Investing Rs. 100,000 per month in a diversified portfolio of mutual funds can lead to significant growth over time. If you aim to reach a corpus of Rs. 5 crore, the time it will take depends on various factors, including the expected return on investment.

Expected Returns and Investment Time

According to a team from CAGRfunds, if your portfolio of 4-5 mutual funds provides a combined annual return of 14%, it will take approximately 14-15 years to accumulate Rs. 5 crore. However, the actual returns can vary, and if returns are higher, the time required may be reduced. For example, if the returns are as conservative as 9%, it takes around 16-17 years.

For a more optimistic scenario, if the returns are around 15%, you can use online calculators to determine the time horizons. Assuming a 12% return, which is a common conservatively estimated return for long-term investments, it will take about 14 years to reach Rs. 5 crore. When the returns are closer to 20%, it can take as little as 12 years to become a crorepati (someone with a crore, or 10 million rupees).

Calculating Your Investment Time

Here's a breakdown of the calculations for different return rates:

15% Average Annual Return: It will take about 15 years to reach Rs. 5 crore. 13.5% Annual Return: If a fund can generate a return of 15%, it will take about 13.5 years to reach Rs. 5 crore. 12% Annual Return: Assuming an average of 12% returns and a monthly investment of Rs. 100,000, it takes around 14 years to accumulate Rs. 5 crore. 20% Annual Return: A higher return rate, such as 20%, can cut the time horizon significantly. With a monthly investment of Rs. 100,000, it takes approximately 12 years to reach the Rs. 5 crore milestone.

Using Online Calculators

For precise calculations, you can use online SIP (Systematic Investment Plan) calculators available on the internet. These tools allow you to input your monthly investment amount, the assumed rate of return, and the expected number of years to visualize your potential returns.

Conclusion

The time it takes to accumulate Rs. 5 crore through monthly mutual fund investments depends on the average annual return you expect. Conservatively, it can take about 14-15 years, but this period can be significantly reduced with higher returns. Always consider using calculators to simulate different scenarios and adjust your investment strategies accordingly.

References

For more detailed information, you can contact CAGRfunds Team at 91 9769356440.