Synopsis– 10 years down the line, I would like to have ₹1 Crore through SIP investments. To meet this objective, a portfolio of established popular mutual funds from large cap, mid cap, small cap, index and hybrid in addition to gold and FD are taken into consideration. This makes the combination to balance a high growth potential coupled with a sense of stability and risk management. As suggested by the approach, it is possible to attain the corpus of 1 Crore in the 10 year and this figure is both possible and realistic with the disciplined SIPs.
One of the most popular goals that Indian investors look at is Rs.1 Crore, whether it is financial independence, purchasing a house, paying off higher education, or simply building long-term wealth. Though this seems like a lot of money, SIPs (Systematic Investment Plan) make it a reality as they help people invest a fraction every month and tap into the power of compounding. In this article, we look at a well-presented SIP portfolio that maintains a balanced mix of equity, debt and alternatives to achieve 1 crore in 10 years.
Portfolio Composition
The portfolio has been built considering a monthly SIP of ₹35,000, with different categories of funds, to ensure both growth and control risk. The selection includes mutual funds with the highest AUM in the 10-year horizon in their respective segment.
| Investment | SIP (₹/mo) | Invested (₹) | Current Value / Corpus (₹) | 10 Year XIRR / Return |
| ICICI Pru Large Cap Fund (Dir Gr) | 10,000 | 12,00,000 | 29,02,330 | 17.07% |
| HDFC Mid Cap Fund (Dir Gr) | 5,000 | 6,00,000 | 18,52,927 | 21.65% |
| Nippon India Small Cap Fund (Dir Gr) | 5,000 | 6,00,000 | 21,43,763 | 24.38% |
| UTI Nifty 50 Index Fund (Dir Gr) | 3,000 | 3,60,000 | 7,49,739 | 14.25% |
| SBI Equity Hybrid Fund (Dir Gr) | 5,000 | 6,00,000 | 12,45,628 | 14.19% |
| Gold ETF SIP | 5,000 | 6,00,000 | 11,61,695 | ~12% |
| Fixed Deposit SIP | 2,000 | 2,40,000 | 3,53,171 | 7.5% |
- Average return of 12% p.a. is considered for expected return of Gold ETF.*
- Total Invested: ₹41,00,000
- Total Corpus after 10 years: ₹1,04,09,253
Why This Portfolio Works
1. Equity Growth Drivers:
- Index and large cap funds provide stability in the equity segment.
- Mid cap and small cap funds have a high growth aspect that makes their returns more than 20% per annum in some instances.
2. Stability and Cushion:
- A hybrid fund is a compromise between equity and debt, which decreases downside risk.
- Gold ETF is an inflation hedge, which performs well when equity tanks.
- Guaranteed returns and psychological safety are added by SIP.
3. Diversification across Asset Classes
- Approximately 72% percent in equity (engine of growth)
- 21%% in hybrid + gold (risk control),
- 7% in FD ensuring capital safety.
Also read: How Long Do Large Cap Mutual Fund SIPs Take to Double Your Investments? A Detailed Analysis
Who Should Consider This Portfolio?
The portfolio fits moderately aggressive investors whose age is between 30s to 40s and with a 10-year time horizon. It suits investors interested in achieving a financial goal such as ₹1 Cr but wants to focus on more equity growth with moderate downside protection. It is not suited to high-conservative investors who cannot tolerate that volatility of markets, and neither does it suit aggressive investors who are highly interested in mid and small caps.
Risks to Keep in Mind
- Equity markets are volatile, short term fluctuations should not distract the SIP process.
- Small caps and mid caps will experience sharp corrections, but over a 10 year period, they have historically proven themselves to gain big.
- Returns are not guaranteed, this portfolio makes the assumption of historic performance continuing long-term in terms of average returns.
Final Thoughts
The ₹35,000 SIP portfolio is an example of how a suitably diversified SIP can potentially achieve a 1 crore mark in 10 years. The computations presume that SIPs continue uninterrupted, without add ons in payments. Inflation is not taken into consideration, so the true-buying value of 1 Crore in 10 years will be less. Equally, expense ratios incurred by funds are not taken into consideration in this estimation.
Please note that past performance is not a guarantee of future performance and market conditions may change considerably over the next ten years. That is why this is an exemplary, rather than a guarantee, to be treated by investors. Before investing, it is always advisable to consult your financial advisor to ensure strategy is in accordance with your risk appetite and financial objectives.
Written by Prajwal Hegde
