Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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How to become a Crorepathi?

Posted by Muthu on November 26, 2008

I’m in the business of meeting various people everyday for Financial Planning, Investment Advice, Teaching and Training.


One common question I come across is how to become Crorepathi (i.e) to have One Crore worth of financial assets.


I want to provide an answer for this through this mail.


If you want to become Crorepathi in 10 years, You’ve to invest Rs.30,000 every month. If the time span is 20 years, then the investment amount per month is only Rs.4330/-. If you can increase the time span to 25 & 30 years respectively, the the monthly investment come to Rs.1740/- & Rs.708/- respectively.


If you want invest an one time amount to achieve a target of Rs.1 Crore then the investment amount  is Rs.20 Lakhs, Rs.3.65 Lakhs,Rs.1.60 Lakhs, Rs0.7 Lakhs for 10 years, 20 years, 25 years and 30 years respectively.


I’ve assumed an annualized return of 18% for arriving at the above numbers. 18% is the annualized return provided by Sensex in the last 30 years.In the past, well managed diversified equity funds have provided returns far superior to the Sensex. I want to mention here the standard disclaimer, past performance may or may not be repeated in the future. Looking at the growth prospects of Indian economy for next three decades (based on BRIC report & other sources), I feel that superior return from equity is possible though the ride would be very bumpy (volatile).


In order to appreciate the above numbers, you need to know the value of one crore today for the periods mentioned above. For this I’ve assumed an average inflation rate of 6%. Today’s value for future Rs.One crore are as follows


10 years- Rs.56 Lakhs

20 years- Rs.31 Lakhs

25 years- Rs.23 Lakhs

30 years- Rs.17 Lakhs


Any investment in equity market has to be preferably done for a minimum term of 10 years. There is a possibility that market may atleast go through 2 cycles in a period of 10 years. The barest…. minimum tenure one can invest in equity is 5 years. Anything lesser than that may prove to be very risky. It is better to avoid equity market totally if your investment tenure is less than 5 years.

3 Responses to “How to become a Crorepathi?”

  1. Ramya said

    Excellent article. Keep posting more such articles.

  2. […] https://wisewealthadvisors.wordpress.com/2008/11/26/how-to-become-a-crorepathi/ […]

  3. BALA said


    I hope this will be very goods tips for me like an expensive man. I try to save monthly Rs.4330.00


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