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Every investor dreams of reaching the golden number – their first one crore. Why is the one crore figure so important? It’s a milestone that represents financial stability and achievement.

Let’s say that you saved Rs 1 crore today; if you invest this at the rate of 15%, in just five years you will have another Rs 1 crore. This is where the magic of compounding begins. Let’s take this example even further and assume that you kept this nest egg untouched for another five years, you will then be sitting on almost Rs 4 cr.


However, for the most of us, getting to this Rs 1-cr mark itself can seem like a daunting journey.

Do not worry, with just a little bit of careful planning and considering some factors such as age, existing portfolio, asset allocation, and market conditions, you can get there soon. Let’s now delve into a strategic approach to help you reach your first one crore mark.

The famous 15*15*15 Rule states that an investor trying to accumulate Rs 1 crore should consider an SIP of Rs 15,000 per month at 15% for 15 years to get to Rs 1cr. While this approach holds mathematical validity, it may not be suitable for all investors and market conditions. Why? It assumes that the markets consistently deliver 15% and one must remain invested via SIP throughout the entire tenure.

What strategy should all investors follow?

Starting Early – The Key to Success:

The sooner you start investing, the better. Time is a powerful ally when it comes to compounding returns. Starting early allows your investments to grow exponentially, giving you a head start towards your financial goals. The longer you invest, the better your chances of maximising returns.

How to make your first Rs 1 crore in 5 years© Provided by The Financial Express

As we can see the accumulated corpus increased by almost 100% with each incremental five years. Therefore, opting for a longer tenure is better.

If you already have some savings, leverage them wisely. Planning with available funds is crucial. Consider the potential of your existing portfolio and explore how you can optimize it to accelerate your journey to one crore.

Working Backwards – The Math Behind the Goal

Setting your goal first is the key to financial planning. Most of us save the excess of our income after budgeting for the expenses. However, the math should be the other way round.

Expenses = Income – Savings.

Understanding your financial gaps is vital. Start with goal planning and then you will get a clear picture regarding how much you need to invest every month. Also, create a budgeted expense pattern, this will allow you to set realistic goals and create a roadmap to reach the one crore mark.

Adjust Expenses with Salary Hikes: Most of us have a tendency of increasing our standard of living with new inflow of funds. However, it is wise to redirect a portion of the increased salary towards investments to decrease the tenure.

You may opt for either of the options based-on availability of funds. With your monthly inflows you should go ahead with SIPs. If you receive lumpsum amounts via bonus etc and market is stable, you may go ahead with lumpsum investment or stagger it across a month.

Strategic Asset Allocation:

Choose your assets wisely based on your risk appetite. Debt and Equity have a low correlation and a combination of these two assets can help in targeting a return around 12% based on your horizon of investment. Equity MF has delivered an average return of 14% over longer tenure and Debt MF have approximately delivered 6% return. The table provided outlines the recommended equity and debt allocation ratios for different age groups.

How to make your first Rs 1 crore in 5 years© Provided by The Financial Express

How to reach One Crore in 5 Years?

Depending on your risk appetite, invest specific amounts through SIP or lumpsum to achieve the one crore milestone in five years.

Option 1: Reaching 1 cr Goal via SIP in 5 Years

How to make your first Rs 1 crore in 5 years© Provided by The Financial Express

Option 2: Reaching 1 cr Goal via Lumpsum amt in 5 Years

How to make your first Rs 1 crore in 5 years© Provided by The Financial Express

To conclude, the key to success lies in starting early, staying disciplined, and adapting your strategy as needed. With careful planning and commitment, the golden number is within reach for every investor.

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