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Financial Planning
Want to build a ₹3 crores corpus by 60? Challenge accepted
Want ₹3 crore for retirement? Learn how compounding, SIPs, and smart investing can help you hit this goal—no lottery win needed.
Key takeaways
- ₹3 crore may sound huge, but with early and consistent investing, it's absolutely doable. Thanks to compounding, even a ₹10,000 monthly SIP at 12% return can get you there in 30 years.
- Start now, pick equity mutual funds for growth, increase contributions over time, and stay invested without interruptions. Time is your greatest asset—let it work for you and retire rich, not stressed.
Would you fancy having ₹3 crore sitting pretty in your bank account when you retire? Before you think “impossible” or click away, hang on. There is a financial superpower that can get you there and it is called compounding.
Here is the simple truth- you don’t need to be rich to retire rich. You just need to understand how money can grow when given enough time. You can think of it like a snowball effect – you start with a small amount, add to it regularly and watch it grow bigger all by itself. Compounding is when your money makes money, and then that new money makes even more money. Let us understand it better in this post and learn practical steps you can follow.
Why ₹3 crore? Let’s break it down
When we talk about retirement goals, ₹3 crore might sound like an arbitrary huge number. But there's a method to this maths. With inflation steadily nibbling away at your money's value, ₹3 crore in 25-30 years will have roughly the same or even lesser purchasing power as ₹1 crore today.
This money can be accounted for your future travel, healthcare, and basic comfort. You will get peace of mind that comes from knowing you won't need to depend on anyone else.
Here is the brilliant bit- You don't need to save ₹3 crore outright. You just need to harness the power of compounding through smart, consistent investing.
The superpower of compounding
Compounding is simply earnings on your earnings. It is like a snowball rolling downhill, which gets bigger as it collects more snow along the way.
Here is how it can make difference
- Start at age 30: Invest ₹10,000 monthly through a diversified equity mutual fund systematic investment plan at an assumed 12% average return → You'll have approximately ₹3.2 crore by the age of 60.
- Start at age 40: Following the exact same plan → You'll only have about ₹1.1 crore.
That’s a difference of over ₹2 crore simply because someone started a decade earlier! The key takeaway: The earlier you start, the less you need to save. Delaying could cost you crores of rupees—not just small change.
Your action plan- Steps to ₹3 crore
Even if you can only manage ₹5,000 a month right now, investing that an estimated amount at 12% for 30 years could still grow to ₹1.5 crore. That's halfway to your goal already! Whenever you can, increase the amount of your SIP.
It is best not to wait for the “perfect time” or until you've got “more money to spare.” It would be a good idea to start with what you have—your future self would high-five you for every month you don't delay.
Remember, time in the market beats timing the market every single time.
Pick growth-friendly investments
| Investment Type | Expected Returns | Risk Level | Best For |
|---|---|---|---|
| Equity Mutual Funds | High | High | Long-term growth |
| Index Funds | Medium to High | Medium to High | Core portfolio |
| Hybrid Funds | Medium to High | Medium to High | Core portfolio |
| Debt Funds | Medium to Low | Medium to Low | Stability |
| PPF/EPF | Low | Low | Stability |
| Fixed Deposits | Low | Low | Emergency funds |
*These are assumptions based on historical data. Future returns could be lower or higher based on market conditions.
Equity mutual funds through SIPs (Systematic Investment Plans) could be your mates for long-term compounding, with historical returns of 12% CAGR.
PPF/EPF are safer but offer lower returns, which is around 7-8%. They are brilliant for your long-term financial health, but it would be better not to put all your money there if you can't handle short-term volatility.
Increase contributions gradually
Here is where the magic happens- it would be a good idea to boost your SIPs by 10% yearly. So, your ₹10,000 monthly investment becomes ₹11,000 next year, ₹12,100 the year after and so on.
Did you get a salary hike? It would be better to invest half of it before lifestyle inflation eats it all. Your future self won't miss what you never got used to spending. This simple habit alone can shave years off your retirement timeline.
Never break the chain
Compounding needs one critical ingredient: time without interruptions. It is best to avoid withdrawals and let your money work uninterrupted.
Conclusion
That holiday to Goa can wait. Your retirement planning shouldn’t get stalled for that. It can be wise to set up automatic transfers, so you never miss an investment—what you don't see in your account, you won't be tempted to spend.
₹3 crore is not a fantasy reserved for lottery winners or tech founders. It is a formula that is available to anyone. It is good idea to start early and invest consistently. Let compounding work its quiet magic while you live your life.
Are you overwhelmed? Well, don’t be! You can even start with a ₹1000 SIP today. Your future self will thank you for reading this far. Now, it will be wise to take that first step and make them grateful.
Disclaimer: This article is intended solely for
informational purposes. The views expressed in this article are personal. Axis
Bank and/or the author shall not be liable for any direct or indirect loss or
liability incurred by the reader arising from reliance on the content herein.
Readers are advised to consult a qualified financial advisor before making any
financial decisions. Axis Bank does not endorse or guarantee the accuracy of
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Mutual Fund investments are subject to market
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of Mutual Funds by Axis Bank’s customer(s) is purely voluntary and not linked
to availment of any other facility from the Bank. This content is for
informational purposes only and does not constitute investment advice. Past
performance is not indicative of future returns. Readers are advised to consult
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