As soon as the salary comes on the first day of the month, expenses come to the fore. In such a situation, creating a fund of Rs 1 crore seems like a distant dream for the common man. When we earn Rs 50 thousand a month, we wonder how we will add such a huge amount. But according to financial market experts, this is absolutely possible. The rule of the market is that it takes the most time to make the first crore, after that the speed of your money automatically increases. If you invest with proper planning, discipline and some patience, you can become a millionaire even with a normal salary. Let us understand how this goal can be achieved through SIP.
How will a person earning Rs 50 thousand add Rs 1 crore?
Kiran Gandhi, director of ‘Karmik Wealth Mentors’, says that even a person earning Rs 50,000 can become a millionaire if he controls his expenses and makes regular investments. For this he has given some very simple rules. The first thing to do is to invest at least 20 to 30 percent of your monthly income in mutual fund SIP every month without fail.
Along with this, create a separate ’emergency fund’ to deal with sudden expenses or crises in life. The advantage of this will be that you will not be forced to break your investment midway. Avoid taking unnecessary loans and do not get lured by getting rich overnight or getting very high returns in the market. Divide your money properly and keep reviewing it every year.
Mathematics of SIP of Rs 12 thousand per month
Now let us understand it from figures. Suppose you start a SIP of Rs 12,000 every month. If you get an average return of 12 percent annually on this investment, then if you keep investing continuously, your fund will reach around Rs 1 crore in about 20 years. That means, if you start this as soon as you get a job at the age of 25 to 30, then within 15 to 20 years you will achieve the target of Rs 1 crore without any huge tension.
If you don’t want to wait for 20 years, then adopt the step-up method.
Many people think that 20 years is a very long time. If you want to reach this goal quickly, you can adopt the simple strategy of ‘Step-up SIP’. This simply means that as your salary increases every year, increase your SIP amount by 10 to 15 percent. This small increase in investment every year will help you achieve your target of Rs 1 crore much before 20 years.
Common man’s trust in mutual funds is increasing
This is not just mathematics, but the common citizen of the country is now openly expressing confidence in this method of investment. New figures from the Association of Mutual Funds in India (AMFI) show that the interest of small investors has increased rapidly. In June 2026, people invested Rs 31,781 crore through SIP, which is a big record so far.
This figure is 2.7 percent more than May 2026 and 16.5 percent more than June 2025 last year. While a year ago, 8.64 crore SIP accounts were operational in the country, now their number has increased to 9.78 crore. Today the situation is such that the total SIP amount (AUM) in the mutual fund industry has reached Rs 17.70 lakh crore, which is 21.5 percent of the total assets of the entire industry.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
