📧                                                                                                                                                  📱 +61 420 669 286

For university Latest Updates Visit New University Website:

SG University Finance

  • Explore our outstanding personal finance tips.
  • Benefit from our comprehensive investing strategies.
  • Stay updated with our authoritative financial news.
  • Empower your financial future with our practical advice.

A Roadmap to Becoming a Millionaire: A Journey to Ten Million in 20 Years

A Roadmap to Becoming a Millionaire: A Journey to Ten Million in 20 Years

Topic: Ten Million In 20 Years

Introduction: Investing in the future is a dream many of us nurture, and for Shamik, this dream translates into amassing 10 Million INR in 20 years. The power of compounding and averaging returns offers a promising path to achieve this goal with a systematic investment plan (SIP). Let’s delve into how Shamik can turn his dream into reality with a strategic approach to investing.

The Power of Compounding and Averaging

When it comes to long-term investments, the magic of compounding cannot be overstated. Compounding allows your investments to generate earnings, which are then reinvested to generate their own earnings. This cycle continues, significantly boosting the growth of your investment over time. Additionally, averaging returns over a long period helps mitigate the impact of market volatility, ensuring more stable growth.

Projected Return and SIP Calculation

To reach the goal of 1 crore INR in 20 years, let’s consider a projected annual return of 15%. This is a reasonable expectation given the historical performance of equity markets. Using a SIP calculator, we find that an SIP of approximately Rs. 7000 to Rs. 8000 per month can help Shamik achieve his target comfortably.

The Calculation

Using the formula for future value of SIP: A=P×(1+r)n−1r×(1+r)A = P \times \frac{{(1 + r)^n – 1}}{r} \times (1 + r)A=P×r(1+r)n−1​×(1+r) Where:

  • AAA = Amount at the end of the investment period
  • PPP = SIP amount
  • rrr = Monthly rate of return (annual rate / 12)
  • nnn = Number of months

Plugging in the values, we see that with a monthly SIP of Rs. 8000 and an annual return of 15%, Shamik is on track to reach his goal.

Diversifying Investments

Diversification is key to managing risk and ensuring steady growth. Given Shamik’s SIP of Rs. 8000, it’s advisable to split this into two parts, investing Rs. 4000 in each of two different schemes.

Suggested Schemes

Parag Parikh Flexi Cap Fund

This fund is known for its flexible investment strategy, which can adapt to market conditions and invest across various market capitalizations and sectors. This flexibility can potentially offer robust returns over the long term.

Mirae Asset Large Cap Fund

Large cap funds invest in well-established companies with a strong track record. Mirae Asset Large Cap Fund focuses on large-cap stocks, providing stability and steady returns.

The Importance of Incremental Investments

While a monthly SIP of Rs. 8000 is a great start, it’s essential to review and increase the investment amount periodically. This approach not only combats inflation but also capitalizes on higher earnings as your income grows over the years. Regularly increasing your SIP amount can significantly enhance your corpus by the end of 20 years.

Thematic Funds: A Case for HDFC Manufacturing Fund

Thematic funds focus on specific sectors or themes. One such fund gaining attention is the HDFC Manufacturing Fund. Manufacturing is a vital sector for any economy, and with initiatives like ‘Make in India,’ the future of this sector looks promising.

Investing in thematic funds like the HDFC Manufacturing Fund can be beneficial for those looking to capitalize on the growth potential of specific sectors. However, it’s important to note that thematic funds can be more volatile than diversified funds, so they should form a smaller portion of a well-balanced portfolio.


Becoming a crorepati in 20 years is not just a dream but a highly achievable goal with disciplined investing. By starting with a SIP of Rs. 8000, diversifying investments across different schemes, and gradually increasing the SIP amount, Shamik can harness the power of compounding to build significant wealth. Additionally, exploring thematic funds like the HDFC Manufacturing Fund can provide an extra edge, aligning with India’s growth story. It’s time to start an investment journey and watch his wealth grow exponentially.

Leave a Comment