Want Rs 1 crore retirement corpus by 50? Monthly SIP you need to make at 30, 35 and 40 years of age

Building a Rs 1-crore retirement corpus can be a goal for you like many others in the country. However, not everyone starts investing at the same age. Some jump in early, while others wait and miss out on those valuable compounding years. No matter when you begin, you must know how much you need to invest to hit your target by a specific age. For example, if you are planning to build a Rs 1-crore corpus by the time you are 50, you’ll need to figure out the investment needed based on whether you start at 30, 35 or 40 years of age.

Building Rs 1 crore corpus through SIP investment

While some people might invest a lump sum amount to build a Rs 1-crore corpus, many prefer a monthly investment that is aligned with their monthly salary or income to achieve their financial goal. So, a lot of them take the systematic investment plan (SIP) route via mutual funds, where they can invest a fixed amount every month or even increase it as their salary grows.


Investment types to build Rs 1 crore corpus

Many financial experts advise building a corpus through long-term mutual fund investments where you may choose equity, hybrid or debt funds to invest according to your risk appetite and years available to achieve the target.

For the long term, you may invest in equity funds as historically, equity investments have beaten inflation in the long term.

But if you pick equity funds to create a Rs 1 crore corpus by the time you’re 50, how much monthly investment do you need if you are currently 30, 35 or 40 years old?

Well, it depends on the returns you get from equity funds. Though the performance of equity funds depends on the share market performance, looking at historical data on Value Research, we can see that the large-cap mutual fund category has delivered 11.76% annualised returns in 10 years, while mid-cap and small-cap categories have given 15.50% and 16.76% returns, respectively.

Keep in mind that just because these funds have done well in the past, that doesn’t guarantee that they will repeat their performance. However, for the sake of calculating how to reach that Rs 1-crore goal, we can assume that equity fund investment will give an annualised return of 12% even if you have a high mix of large caps.

Starting at 30: Monthly SIP needed for Rs 1 crore corpus by 50

If you start SIPs at the age of 30, you have 20 years to build the corpus, which is quite a long period for the investment to grow. As per the Groww SIP calculator, you might end up with a Rs 1-crore corpus with a monthly investment of Rs 10,875.

Starting at 35: Monthly SIP needed for Rs 1 crore corpus by 50

If you start at 35 years of age, you have 15 years to invest, and hence, your estimated monthly SIP investment will have to be Rs 21,020, Rs 10,145/month more than the SIP required if you start at 30.

Starting at 40: Monthly SIP needed for Rs 1 crore corpus by 50

Now you have just 10 years to build the Rs 1 crore corpus. The estimated monthly SIP needed to reach that corpus in a decade will be approximately Rs 46,640. You can see that while the duration has been cut to half, the SIP size has increased by 4.28 times.

Such is the power of compounding in a long-term investment.

SIP/month needed for 30, 35 & 40-year-olds to achieve Rs 1 cr corpus by 50

Start investing at	Invest until age	Annualised return	Monthly SIP needed for Rs 1 cr corpus	SIP increase required
30 years	50 years	12%	₹ 10,875	-
35 years	50 years	12%	₹ 21,020	93%
40 years	50 years	12%	₹ 46,640	329%

Rs 1 crore corpus through step UP SIP

Sometimes, you might start with a smaller monthly investment but still want to hit that Rs 1 crore target by the age of 50. In that case, you can choose a step-up SIP, where you can start with a lower initial amount and increase it every year as your income rises. For our calculations, we are considering that as a 30, 35 or 40-year old, you will step up the SIP amount by 5% every year and get a 12% annualised return. Let’s see how much initial amount you may save.

Starting at 30: Monthly step-up SIP for a Rs 1 crore corpus by 50

If you start at 30 years of age, a Rs 7,850 monthly step-up SIP with a 5% annual step up can help you reach the Rs 1 crore corpus in 20 years.

Starting at 35: Monthly step-up SIP for a Rs 1 crore corpus by 50

At 35, you may start with approximately Rs 16,160 step-up SIP and increase the amount by 5% annually to reach the Rs 1 crore corpus target by 50.

Starting at 40: Monthly step-up SIP for Rs 1-crore corpus by 50

An initial step-up SIP of Rs 37,130 with a 5% annual step-up may help you achieve a Rs 1-crore corpus goal in 10 years.

Normal SIP vs step-up SIP: Monthly amount saved on first-year SIP (at 5% step-up, 12% annual return)

Starting age	Target age	Normal SIP/month	SIP with 5% annual step-up
30	50	₹ 10,875	₹ 7,850
35	50	₹ 21,020	₹ 16,160
40	50	₹ 46,640	₹ 37,130

The calculations show that while one can achieve the Rs 1 crore corpus goal with a normal SIP, the same corpus can be built with a considerably lower initial amount if you opt for a step-up SIP.

Calculators used: Groww, percentagecalculator