Wealth creation is a journey that requires discipline, patience, and a well-structured investment plan. A ₹ 10 crore corpus might seem very high, but with a systematic approach and the power of compounding, it is achievable. In this article, we will discuss How to create a ₹ 10 crore mutual fund portfolio by investing ₹ 25,000 monthly in mutual funds. We’ll also explore strategies, fund recommendations, and tips to accelerate your wealth creation journey.
Why aim for ₹ 10 Crore?
A corpus of ₹ 10 crore provides financial security and the freedom to pursue your dreams. Whether it’s early retirement, starting a business, or achieving financial independence, this goal can open up endless possibilities. With inflation eroding purchasing power, aiming for a substantial corpus ensures that your wealth remains relevant in the future.
SIP for Compounding in Wealth Creation
Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly in mutual funds, benefiting from rupee cost averaging and the power of compounding. Here’s an example:
- Monthly Investment: ₹ 25,000
- Investment Tenure: 31 years
- Expected Annual Return: 12%
- Future Value: ₹ 10 crore
- Investment Tenure required @ 15% returns: 26 years
By investing in disciplined way for long term, you can wealth such high corpus. In case you new to these mutual funds, Explore Mutual Funds Beginners Guide first.
Suggested Portfolio Allocation
A diversified portfolio is required for maximizing returns while managing risk. Here’s a suggested allocation for your ₹ 25,000 SIP.
#1 – Large-Cap Funds (30%)
Large-cap funds invest in established companies with a proven track record, offering stability and steady growth.
Recommended Funds:
- Nippon India Large Cap Fund
- Invesco India Largecap Fund
#2 – Mid-Cap Funds (25%)
Mid-cap funds target companies with high growth potential, offering higher returns with moderate to high risk.
Recommended Funds:
- Motilal Oswal Midcap Fund
- Invesco India Mid Cap Fund
Explore some more at Top 5 Midcap Mutual Funds to invest in 2025
#3 – Small-Cap Funds (20%)
Small-cap funds focus on smaller companies with significant growth potential. These funds are high-risk but can deliver exceptional long-term returns.
Recommended Funds:
- Bank of India Small Cap Fund
- Nippon India Small Cap Fund
#4 – Flexi-Cap Funds (15%)
Flexi-cap funds provide the flexibility to invest across market capitalizations, balancing risk and reward.
Recommended Funds:
- Parag Parikh Flexi Cap Fund
- JM Flexi Cap Fund
#5 – International Funds (10%)
Investing in international funds offers geographical diversification and exposure to global markets.
Recommended Fund:
- Motilal Oswal Nasdaq 100 Fund of Fund
Majority of above funds are listed in our earlier article on Top 10 Mutual Funds to invest in 2025 for long term.
Strategies for Wealth Creation
Step 1: Start Early
Time is your biggest path in wealth creation. Starting early gives your investments more time to grow, leveraging the power of compounding.
Step 2: Gradually Increase Your SIP
As your income grows, increase your SIP amount by 10-15% annually. For instance, starting with ₹ 25,000 and increasing it by 15% annually can significantly boost your corpus.
Step 3: Choose the Right Funds
Select funds with consistent performance, experienced fund managers, and low expense ratios. Regularly review and rebalance your portfolio. You should regulary check in case you are investing in Worst Performing Mutual Funds in the last one year.
Step 4: Stay Invested
Market fluctuations are normal. Stay invested and avoid reacting to short-term volatility. Focus on your long-term goals.
Step 5: Diversify Across Asset Classes
While equity funds are important for wealth creation, consider adding debt funds or gold ETFs for stability and diversification.
Impact of Increasing SIP by 20% Annually
If you start with a ₹ 25,000 SIP and increase it by 20% annually, your corpus can grow exponentially. Assuming a 12% annual return:
- 10 Years: ₹ 1.26 crore
- 15 Years: ₹ 4.11 crore
- 20 Years: ₹ 12.01 crore
This strategy allows you to fast track wealth creation without requiring a massive initial investment.
Can we create ₹ 10 Crore early?
10 Years
- Monthly SIP Required: ₹ 4.3 lakh
- Recommended Strategy: Invest aggressively in high-risk, high-return funds like small-cap or sectoral funds. Ensure you’re comfortable with the risk.
15 Years
- Monthly SIP Required: ₹ 200,000
- Recommended Strategy: Maintain a balanced portfolio of large-cap, mid-cap, and small-cap funds.
20 Years
- Monthly SIP Required: ₹ 100,000
- Recommended Strategy: Again Maintain a balanced portfolio of large-cap, mid-cap, and small-cap funds.
Sample Mutual Fund Portfolio
Here’s a sample allocation for a ₹ 25,000 monthly SIP:
Fund Category | Fund Name | Allocation (₹) |
Large-Cap Funds | Nippon India Large Cap Fund | 7,500 |
Invesco India Largecap Fund | ||
Mid-Cap Funds | Motilal Oswal Midcap Fund | 6,250 |
Invesco India Mid Cap Fund | ||
Small-Cap Funds | Nippon India Small Cap Fund | 5,000 |
Bank of India Small Cap Fund | ||
Flexi-Cap Funds | Parag Parikh Flexi Cap Fund | 3,750 |
International Funds | Motilal Oswal Nasdaq 100 FoF | 2,500 |
Key Takeaways
- Start Early: Time is the most critical factor in wealth creation.
- Diversify Wisely: Allocate your investments across categories for optimal risk-reward balance.
- Stay Disciplined: Consistency and patience are essential for long-term success.
- Review Regularly: Monitor your portfolio and make adjustments as needed.
- Leverage SIP Increases: Gradually increase your SIP to accelerate wealth creation.
Final Thoughts: Creating a ₹ 10 crore mutual fund portfolio with a ₹ 25,000 monthly SIP is not only achievable but also practical with the right strategy. By starting early, staying disciplined, and diversifying your investments, you can unlock the power of compounding and achieve your financial goals.
Happy investing!!
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Hi Suresh Sir,
I m keen interested for to create wealth 10cr in 10 years,, do u suggest which funds to invest aggressively and SIP amount pls.
You can follow our top 10 funds article for recommended funds to start with
Sir, As you mentioned each category 2 funds. you are recommending to invest in both funds or either one? please clarify.
Also, suggest debt fund for protection
Personally I invest in couple of funds from each category to avoid any risk of investing in single fund. I would suggest the same way to investors.
Is it good to invest in mutual funds or ETF in long term ?
Either of them is good. Both have their pros and cons