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With savings of Rs.25k per month, how to make Rs.1 crore in 4 years?

Author
Anmol Gupta

It’s often people’s unrealistic expectation that makes them unhappy. When it comes to investments, some people expect magic to happen :) If done rightly, investments can do wonders but expecting to turn potatoes into gold is only laughable. I encountered a similar incident on Quora where the person wanted to make 1 Crore rupees in 4 years by investing Rs. 25K per month. Following was my mathematical answer to that question.

“To make 1 Crore by investing 25K per month for 4 years, you need your investments to give a return of ~135% per annum. 135% per annum for 4 years is unlikely with any kind of investment.

By investing 25K per month, you will need to invest for about ~12.5 years to accumulate 1 CR provided your investments give a return of 15% per annum.

If you really want to accumulate 1 CR in 4 years, then you will need to invest ~ 170.5K per month at a rate or return of 10% per annum.”


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About the Author
Anmol Gupta
Anmol is CEO at 7Prosper. He is SEBI Registered Investment Adviser, with expertise in Finance and Technology domains. Anmol is committed to help people achieve their financial freedom.

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