How much SIP is needed to accumulate ₹5 crore by age 45


I am 32 years old and I have been investing since I was 24. I have MF and equity corpus of around 18 lakhs as of now ( 7 lakhs in direct equity and rest in MFs). I have around nine different MFs but high exposure with Aditya Birla Long Term Growth, Axis Long Term Equity, Franklin Templeton Small Cap, all funds are performing at 11-17% on average, with some exceptions. I have a house loan of 20 lakh and I am paying 25,000 per month as EMI. My net take home monthly salary is 1,10,000. Right now I don’t have any SIPs as I am trying to rejig my portfolio to meet my goal. My goal is to accumulate 5 crore by the age of 45 with zero debt, and an early retirement. Please suggest a way forward.

– Name Withheld

Answer by Harshad Chetanwala, founder,


It is always good to have ambitious goal when it comes to retirement or wealth creation. Your plan to retire early at around the age of 45 will motivate you to invest more. If we map your present equity and mutual fund portfolio to your retirement, the value of your investment will be Rs62 lakh at 10% p.a. or Rs78.50 lakh at 12% p.a. growth rate when you will be 45. To accumulate the remaining amount of your target, you will have to invest Rs1.41 lakh or Rs1.17 lakh per month up to the age of 45 years if we assume 10% p.a. or 12% p.a. rate of return respectively.

As per your current cash flow, after paying your EMI of Rs25,000 you will have Rs85,000 in your hand every month. You will also have to factor your household and personal expenses from this remaining amount which is subjective and will further reduce your investible surplus. It is difficult to assume this amount, but usually it is 25-30% of your income. In such a case, you will be left with about Rs60,000 per month to invest. If you invest this amount in equities or equity mutual funds, by 45 years of age you will have about Rs1.85 crore or Rs2.14 crore, assuming a return of 10% p.a. or 12% p.a. And when we include your existing investment with this, you may accumulate Rs2.5 crore to Rs3 crore.

Hence, as per your present investments and income, you may have to push your plans to retirement by few more years after the age of 45. You can invest more after paying your EMI if possible and that can help you to accumulate more in future. At the same time, you can plan to increase your investment every year by 16% and that can help you reach close to Rs5 crore, assuming 12% p.a. rate of return.


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