For many investors, accumulating ₹1 crore might seem like a daunting task, especially when planning for retirement. However, with patience, discipline, and the power of compounding, even a modest monthly investment of ₹5,000 in a Systematic Investment Plan (SIP) can help achieve this milestone. The key lies in staying invested for the long term, focusing on a specific financial goal, and selecting the right funds based on your risk appetite.

Let’s break down how long it would take to become a crorepati by investing ₹10,000 per month, assuming different rates of return. SIPs leverage the power of compounding, where your returns generate further returns over time.

For instance, if you are a conservative investor assuming a 10% annual return, investing ₹10,000 every month would take approximately 23 years to reach ₹1 crore. By investing around ₹28 lakh, you could generate an estimated return of ₹72 lakh.

If you are a moderate investor assuming a 12% annual return, it would take about 20 years to reach ₹1 crore. In this case, an investment of approximately ₹25 lakh could generate an estimated return of ₹75 lakh.

For aggressive investors aiming for higher returns (assumed 15% annual rate of return), reaching ₹1 crore would take just 18 years. By investing around ₹22 lakh, you could generate an estimated return of ₹78 lakh.

Key Mantras:

* Even a mutual fund SIP of ₹10,000 can make you a crorepati with long-term discipline.

* The earlier you start, the faster you reach your goal due to compounding.

* A higher return can significantly reduce the time required to accumulate ₹1 crore.

* Increasing your SIP amount over time can further accelerate wealth creation.

So, are you ready to take the first step toward becoming a crorepati? If you follow the correct steps and are willing to be patient and not be swayed by market fluctuations, your goal may not be far.

Disclaimer: Mutual fund investments are subject to market risks, and past performance does not guarantee future returns. The calculations in this story are based on assumed rates of return (10%, 12%, and 15%), which may vary due to market fluctuations. Actual returns may be higher or lower based on economic conditions and fund performance. Investors should consult a financial advisor before making any investment decisions. These views do not represent Fortune India.