How to Earn 1 Crore Through SIP: A Comprehensive Guide

Many individuals aspire to accumulate a significant sum of Rs 1 crore through disciplined investing. If you are wondering how to earn Rs 1 crore, especially by investing around Rs 20,000 every month, you're at the right place. While achieving this financial milestone is not impossible, it is feasible with the right investment strategy and commitment to long-term financial planning. One of the most effective ways to accomplish this goal is through Systematic Investment Plans (SIP) in Mutual Funds. In this blog, we will help you with the steps to fulfil your dream of becoming a crorepati through SIPs, also emphasising the role of Equity Mutual Funds in this journey.

Understanding the goal: Earning Rs 1 crore

To earn Rs 1 crore, it is essential to be clear about expectations and understand that achieving this goal will require time and consistency. Earning Rs 1 crore through investments is a goal that can be realised with dedication and the right approach. Let's get to know the key elements of this financial aspiration assuming that one has a monthly sum of only Rs 20,000.

Strategy to earn 1 Crore

While there’s no specific approach to investing, a disciplined SIP in Mutual Funds can help you build wealth over time. For instance, investing ₹10,000 per month for 20 years at an estimated return of 12% can grow your investment to around ₹1 crore.

To reach this goal faster or with more confidence:

• Increase your SIP amount as your income grows

• Choose equity mutual funds for better long-term returns

• Review and adjust your portfolio annually

• Stay consistent and avoid reacting to short-term market changes

The key is to start early, invest regularly, and let compounding do the rest.

How much you should invest in mutual funds to earn Rs 1 Crore.

Planning your investments smartly is the first step toward achieving big goals like building a fund of Rs. 1 Crore. But many investors are unsure how much to invest or for how long. That’s where a Mutual Fund Calculator comes in handy. It helps take the guesswork out of your financial planning.

The tool is very simple to use and you can find it on ICICI Bank’s website. It shows how much your investment can grow over time. You are required to enter basic details like your monthly investment amount, investment period, and expected rate of return. The calculator then instantly shows your total maturity amount. This makes it easy to plan your savings, track your progress, and adjust your monthly investment if needed.

List of the Best Mutual Funds

1. ICICI Prudential India Opportunities Fund – Growth

This is a special situations fund that invests in companies facing temporary challenges or unique situations that can lead to long-term gains. It’s a high-risk, high-reward type of fund.

• Fund Type: Equity – Thematic
• Risk Level: Very high
• Expense Ratio: 0.74%
• Exit Load: 1% if redeemed within 1 year
• Best For: Investors seeking opportunities beyond regular market movements.

2. ICICI Prudential Business Cycle Fund – Growth

This fund changes its investment approach based on different phases of the business cycle (expansion, slowdown, recovery, etc.), adjusting to market conditions.

• Fund Type: Equity – Thematic
• Risk Level: Very high
• Expense Ratio: 0.82%
• Exit Load: 1% if redeemed within 1 year
• Best For: Investors who want to invest according to the economic cycle for better returns.

3. Sundaram Consumption Fund – Regular Plan – Growth

The fund is majorly focused on India’s growing consumption theme and it invests in sectors such as FMCG, automobiles, retail, etc.

• Fund Type: Equity – Sectoral
• Risk Level: Very high
• Expense ratio: 2.21%
• Exit Load: 0.5% if redeemed within 30 days
• Best For: Those who believe in the long-term growth of India's consumption sector.

4. ICICI Prudential Bharat Consumption Fund – Growth

This fund aims to benefit from the increasing demand in rural and urban consumption. It invests in businesses related to daily needs, travel, food, and more.

• Fund Type: Equity – Thematic
• Risk Level: Very high
• Expense ratio: 2.05%
• Exit Load: 1% if redeemed within 3 months
• Best For: Long-term investors confident in India’s consumption growth story.

5. SBI Consumption Opportunities Fund – Growth

The SBI Consumption Opportunities Fund is ideal for growing market conditions. It follows the

consumption theme and selects stocks from sectors like food, personal care, clothing, entertainment, etc.

• Fund Type: Equity – Sectoral
• Risk Level: Average
• Expense Ratio: 2.02%
• Exit Load: 0.10% if redeemed within 30 days
• Best For: Investors with a strong belief in India’s domestic consumption strength.

Mapping the path

You aim to invest approximately Rs 20,000 every month towards achieving your Rs 1 crore target. The timeline to reach this goal depends significantly on the returns you earn. While calculating, it is wise to consider the lowest expected returns to achieve realistic expectations. Let's explore different scenarios to understand how many years it may take to achieve your target. 

Monthly investment: Rs 20,000

At 10% average annual return: will take 16 years

At 12% average annual return: will take 15 years

At 14% average annual return: will take 14 years

To learn more, use the ICICI Bank Mutual Fund Calculator, to get an approximate amount. Consult an advisor/tax consultant before investing.

While these estimates provide a general idea, it's essential to recognise that the actual time it takes can vary based on market conditions and fund performances. If your investments yield higher returns, you may reach your goals sooner, which is certainly a positive outcome.

Disciplined investing: Consistency is key. To accomplish this goal, you must maintain a disciplined investment approach and stay committed to your investment plan over the long term.

Can I earn Rs 1 Crore?

The target of how to earn 1 Crore may sound very big at first, but it is possible if you invest in the right funds and use the conditions to maximise your money over the years. You can start with small monthly investments in Mutual Funds via SIP with just ₹500. The key is to start early and be consistent.  

Choosing the right investment: Equity Mutual Funds

When seeking sizeable wealth creation over the long term, Equity Mutual Funds are a popular choice. These funds have the potential to deliver returns that outpace inflation, making them a favoured option for wealth creation. While there are no guaranteed or fixed rates of return in Equity Mutual Funds, historical data can provide valuable insights.

Here are some popular Equity Mutual Fund categories along with their 10-year historical returns, giving an idea of what you can expect from your investments:

Large cap: 10-year return - 13.50%

Large & mid cap: 10-year return - 15.94%

Flexi cap: 10-year return - 14.52%

Equity Mutual Funds have the potential to generate average annual returns ranging from 10% to 14%. These returns, although not fixed, provide a basis for estimating your wealth accumulation journey. 

Selecting the right Equity Mutual Funds

To make the most of your SIP investments and work towards earning Rs 1 crore, you need to choose the right Equity Mutual Funds. Here are some guidelines for selecting suitable funds:

• Diversification: Consider diversifying your investments across different categories of Equity Funds, such as large cap, mid cap and flexi cap to spread risk. 

• Past performance: Review the historical performance of the funds to assess their track records and consistencies.

• Fund manager expertise: Evaluate the expertise and experience of the fund managers responsible for making investment decisions.

• Research tools: Use financial tools and resources, such as ICICI Bank Mutual Fund Calculator, to get an approximate amount of investment and returns.

How to make 1 crore with Mutual funds?

Reaching Rs. 1 Crore through mutual funds is possible with the right plan and time. Whether you have 1 year or 10 years, there’s a way to reach your goal. Let’s understand how you can reach your goal and get expected returns.

1. When the Investment Horizon is 1 Year

If you wish to reach Rs. 1 Crore in just one year, the monthly amount you need to invest is very high. Let’s say you expect a return of around 6.5% per year, in that case, you would need to invest around Rs. 8,09,000 every month.

It means in one year, you would have invested nearly Rs. 97 Lakhs to get Rs. 1 Crore with the help of interest earnings. In such cases, the time is very short, so it is better to invest in liquid mutual funds. These are low-risk and let you withdraw your money quickly, often within 1 to 2 working days.

2. When the Investment Horizon is 3 to 5 Years

If your goal is to reach Rs. 1 Crore in 3 to 5 years, your monthly investment will still be high but more practical than the 1-year case. Suppose the expected return is around 9% per year, then you would need to invest approximately Rs. 1,31,600 every month for 5 years.

In this case, it is better to invest in hybrid mutual funds or large-cap funds. Hybrid funds invest in both equity (shares) and debt (bonds), so they offer balanced growth with lower risk. For example, if you earn a good salary and can invest over Rs. 1 Lakh monthly, this strategy could help you reach your Rs. 1 Crore goal in 5 years.

3. When the Investment Horizon is More Than 5 Years

This is the most comfortable option for most people. If you want to reach Rs. 1 Crore in 10 years, and expect an annual return of around 11%, you would need to invest around Rs. 47,500 every month.

With this long horizon, you can explore more high-growth mutual fund options like mid-cap, small-cap, and multi-cap funds. These invest in growing companies and give higher returns in the long term. For example, someone who starts investing Rs. 47,500 per month at age 30 can reach Rs. 1 Crore by the time they turn 40. 

Your path to earning Rs 1 crore

Earning Rs 1 crore through SIPs is an achievable financial goal, provided you engage in disciplined investing, select the right Equity Mutual Funds and stay invested for the long term. While the journey may require patience, consistent savings and an effective investment strategy, the potential rewards are significant. Past performance is indicative and market conditions can vary, so it is crucial to consult with a financial advisor, regularly monitor your investments and make informed decisions. Your path to becoming a crorepati begins with a well-structured SIP investment plan and the sooner you start, the closer you get to realising your financial dreams.