money, saving, savings-4068357.jpg

Become a Crorepati in 10 years by Investing

Among all your aspirations, one thing that most of us have in common is to be financially free. Achieving financial freedom comes with many benefits and perks, such as control over your time, spending your time and money on things you like, and much more. Such is the craving for wanting to be richer than the searches on Google on How to become a millionaire or How to become a crorepati is far too common.

Well, there could be many methods for you to become a crorepati, but I would discuss in this article one of the basic concepts to do that and to be able to achieve it with the least friction.

The Assumptions:

Since I do not know you personally, I have made a few assumptions about you.

  1. You are in the age group of 24-27 years.
  2. No responsibility of people aside from your parents
  3. You have no intention of buying a house or paying any chunk of your salary in EMI
  4. You save at least 50K per month from earning as an employed individual.

man, office, businessman-1633667.jpg

The Reasoning:

Now, you may expect the reasons behind such assumptions:

Being between the age group 24-27 years means you usually do not have any big responsibility yet. You do not have to look after your spouse or your child. Moreover, if your parents live with you, there is no significant overhead cost. You can look after their expenses. Usually, the parents already have their funds or are still working, leaving you more freedom.

Not thinking about a home is a bonus as you don’t lock a portion of your savings for buying the house straight for 20-30 years. It leaves you with more money to save and invest.

Now, if you earn much more and can easily save 50K, you can have slight leeway.
If you are earning 1.5 lacs per month and you see your job as secure with no foreseeable layoffs, you can easily save up 50K and use 1L as per your choice, but for those having a salary, say 70-80K, there is little scope for added expenses if you wish to save up to 50K per month.

The Road Ahead:

Now comes the part of discussing what to do with that precious 50K you save monthly.
The answer is obvious: Invest.
The whole objective of investing is to increase your money power. Investing allows your already earned money to earn more without you doing anything, giving you more freedom.

There are many avenues where you can invest. You could invest in real estate, build your business, buy and sell things. But remember, I am assuming that you are an employed person. Having a job and doing other things requires too much time. And there are chances of error.
You want an instrument that requires minimum intervention. And for the general crowd, it is investing in equities.

stock, market, chart-6682491.jpg

What are Equities?

Equity of any business is a part of that business. To hold any equity, you must buy shares from the share market. When the business expands, the company’s valuation increases. 

As the overall value of the company increased. The portion of the company you own must also increase. When that happens, the value of the shares you own multiplies.
The stock market, especially the Indian Stock Market, is where you buy stakes of publicly traded companies. You buy their shares, and when their value increases, you sell them.

Many of you might share your concerns about the stock market being a place for gamblers. You always lose money. There is no way you can make money in the stock market.
All your concerns are legit, and nobody wants to lose money, no matter the scenario. To tackle such problems, I have written a separate article on the common roadblock while investing in equities. I highly suggest you read the article, and when you feel confident, hop back on to this article.

Join our Mailing list!

Get all latest news and updates.

The main reason I am suggesting you invest here is because of the scope of growth in equities.
Take any instrument you are aware of.

Like debt, real estate, cryptocurrency, or Gold. Try to compare the annual growth of these instruments with that of equity.
You will see a mind-boggling difference between them. You can see the above table and see the difference for yourself.
Now you may wonder, is a 12% annual return much more significant than an 8% return?
After all, it is a mere 4% difference. Right?

These returns over 15-20 years can create a difference of crores.

Sip, investing, stock market, equity, growth
income, growth, financial freedom

Here are two images of 30K invested monthly for 20 years. One is at 12% annual growth, and the other at the rate of 8%. You can see the difference for yourself.
Imagine the power of that 4% difference. You might wonder, how can this be possible? Well, you can understand all this when you understand one of the magnificent tools: The Compound Interest.

I highly encourage you to read about the Compound Interest and understand how the wealth grows using this principle.

Now that we are fully aware of the potential of the stock market, you have to make a crucial decision beforehand.
Do you want to pick stocks yourself, or do you want to buy a pre-packaged instrument known as an Index fund?
Index funds such as Nifty are the collection of the top 50 companies of the Indian Stock Market. The greater these companies perform, the better your index returns.

So, what would you choose?

Buying your stocks or just buying the index fund?

Buying your stocks means you need time to research them and their financials and see whether the company is doing well.
In truth, it consumes a great deal of time, but if you are doing things correctly, you can earn an annual return above 16%.
In contrast, the index fund is the collection of the top 50 companies. 

You pay money to the platform, and it buys the index fund. In these 50 companies, some will grow, some might remain stagnant, and some may go out of business, but over the long run, you can grow your money between 11-13% annually. I know it is far less than the 16%, but it also consumes less time.
So you see, you have a trade-off in front of you. You decide which way you have to go.

Let’s be quite lazy and pick the top 5 companies of the Indian Stock Exchange and invest our 10K each in the five of them. These companies are

  1. Reliance Industries
  2. Tata Consultancy Services
  3. HDFC Bank
  4. ICICI
  5. Infosys

The thinking is simple. These are the top companies managed by world-class managers. We can expect them to behave similarly in the future.

Let’s assume we had invested 10K each in each stock for ten years and want to sell them today.

1. Reliance

stock price comparison Reliance
sip, investing, money, growth, corpus

2. TCS

stock price comparison TCS
stock price, income, TCS, money, management

3. HDFC Bank

stock price comparison HDFC
money, equity, savings


stock price comparison ICICI
icici, income, growth, stock

5. Infosys

stock price comparison infosys
income, money, growth, investing, sip

Your 60 lacs would have become 1,58,06,389 in 10 years if you had just invested, no matter the market condition.

But here are some drawbacks to this idea:
1) This is our work going backward. You can never earn money on past performances.
2) The returns may not be the same for the future.

But let me clarify that it does not mean that it will never work. If you are still sure about the top companies, you can still follow it. It all depends on the level of risk and understanding you have about the market and yourself.
If you have the time and patience, you can easily pick stocks and put your money.

But not all office goers have the luxury to read the annual statement and pick up companies to our likings. We want a lazy instrument where you just put the money and let the market do its thing. For people like them, you have Index Funds.
Just invest your monthly amount and never check your portfolio.

Join our Mailing list!

Get all latest news and updates.

Become A crorepati in 10 years:

Investing your money monthly into an asset is known as doing a Systematic Investment Plan or SIP.

This mechanism intends to develop a savings habit for the user to build long-term wealth.

Now, you may be thinking about how to calculate the returns for such investing.

You can calculate the return using the formula of XIRR or Extended Interest Return Rate.

Interested users can learn about it by clicking the link above.

Now is time for an exercise:

Go to the following link. Here, you can calculate your returns in an SIP by playing with the numbers.

Enter the following values:

Amount: 50K=>This denotes the amount you will be infusing each month

Time 10 years => The period you will keep investing the money.

Returns: 12% => The returns with which you expect the money to grow.

Please note that I have written the word expect specifically to make you understand that you cannot control what the market offers.

You can only expect the 12% returns, which has been the past performance.

Maybe you might get 18% overall in the decade and achieve your target much earlier, or you may get only 8%.

The only thing to control is your invested amount and the period you invest in.

Fiddle with the numbers on the calculator and see what kind of investment horizon and invested value meet your goals in the long term.

Investing 50k for ten years at 12% allows you to have one crore rupees and become a crorepati in ten years.

sip, lumpsum, investment, growth, money, wealth


Investing in index funds may not be a stimulating mode of investment. It sure is a boring method and requires a lot of patience, but it saves you a lot of mental energy. And if you are a person who can easily accept a lower return than expectations, you will survive even better. Here is a section from the book Psychology of Money by Morgan Housel. If you ever get the chance, do read the Psychology Of Money.

Every investor should pick a strategy that has the highest odds of successfully meeting their goals. And I think for most investors, dollar-cost averaging into a low-cost index fund will provide the highest odds of long-term success. That doesn't mean index investing will always work. It doesn't mean it's for everyone. And it doesn't mean active stock picking is doomed to fail. In general, this industry has become too entrenched on one side or the other-particularly those vehemently against active investing

Not investing your money is never an option. You can not let it sit idle, no matter the cost.
Pick any instrument as per your circle of competence, create an honest expectation, and plan what you need to invest. That’s all to it. I hope this article will leave you with some kind of curiosity to learn more and improve your finances. If you have any doubts, you can always come to our forum and discuss your thoughts.

chairs, forum, banner

Have Something to Say or Share on this topic?

Head out to our forum and join other readers to learn more.

Seraphinite AcceleratorOptimized by Seraphinite Accelerator
Turns on site high speed to be attractive for people and search engines.