Couple earning Rs 1.5 lakh/month can build Rs 1.24 crore corpus in 10 years, this financial advisor tells how it can be possible

Building a Rs 1.24 crore corpus in 10 years through savings from a monthly income of Rs 1.50 lakh can be a dream for many earning couples. For a couple living in a metro, there can be many expenses such as paying house rent, EMIs, groceries, insurance premiums, etc. Even if they earn above Rs 1 lakh, saving money for investment and building a sizeable corpus may appear to be a distant dream. But a financial advisor tells how, through a disciplined approach, a couple with a Rs 1.50 lakh/month income can build a Rs 1.24 crore corpus in 10 years.

In a LinkedIn post, Vijay Maheshwari, CWM®, reveals how financially a smart couple with a cumulative income of Rs 1.5 lakh can handle their fixed expenses and investments to create a Rs 1.24 crore corpus in 10 years.

For a couple earning Rs 1,50,000 a month, Maheshwari gives the breakup of expenses.

Fixed Commitments:

• Rs 3,500 – Health Insurance (Rs 50L cover)

• Rs 3,500 – Term Insurance (Rs 1.5 cr cover)

• Rs 60,000 – Rent + Utilities

• Rs 30,000 – EMIs (Home + Car)

Total: Rs 97,000

Left for Wealth Creation: Rs 53,000/month

Investment plan to create Rs 1.24 cr corpus in 10 years

According to his financial plan, the couple needs to invest Rs 53,000 monthly for 10 years in succession without stepping up their investment amount.

As per his asset allocation plan, the couple needs to invest Rs 15,000 monthly in debt mutual funds for their short-term goals, Rs 15,000/month in hybrid funds for medium-term goals, and Rs 20,000 monthly in equity mutual funds for long-term wealth building.

Investment Plan: Rs 53,000/month Allocation

• Rs 15,000 – Short-Term Goals (debt mutual funds)

• Rs 15,000 – Medium-Term Goals (hybrid funds)

• Rs 20,000 – Long-Term Wealth (equity SIPs)

• Rs 3,000 – Safety Reserve (digital gold)

Investment growth (10-year projection)

As per Maheshwari’s projection, a Rs 15,000 monthly investment in debt funds will grow to Rs 27 lakh.

A Rs 15,000 monthly investment in hybrid funds will be worth Rs 33 lakh, as per his projections.

The Rs 20,000 investment a month in equity funds will increase to Rs 58 lakh in equity funds.

A Rs 3,000/month investment in gold assets will be worth Rs 6 lakh.

The cumulative worth of investment will be Rs 1.24 crore.

Maheshwari didn’t reveal annualised returns from these investments to create a Rs 1.24 crore corpus. But let’s see what the estimated annualised returns on these investments should be to generate a Rs 1.24 crore corpus in 10 years

Debt fund investment

SIP amount- Rs 15,000, corpus- Rs 27 lakh

Estimate rate of return- 7.86%

Hybrid fund investment

SIP amount- Rs 15,000

Corpus- Rs 33 lakh

Estimated return- 11.65%

Equity SIP investment

SIP amount- Rs 20,000

Corpus- Rs 58 lakh

Estimated return- 16.81%

Gold investment

SIP amount- Rs 3,000

Corpus- Rs 6 lakh

Estimated return- 9.86%

Few assumptions in this calculation appears to be rare. Savings of Rs 53,000 per month from a salary of Rs 1.5 lakh per month may be a challenging task for many couples. Similarly an equity return of 16% is not very easily achieved. However, the disciplined investment into right asset class through SIP has proven to be a good strategy to build wealth in the long run.