SIP Hack to Reach Rs 10 Crore Retirement Corpus—One Fund Even Grew to Rs 18.34 Crore Using This Strategy!

The short answer: Yes! But only if you know this simple hack.

Is it possible for a young professional, aged 29-30, to accumulate a Rs 10 crore retirement corpus by the time they retire, even if they are just starting to invest in mutual funds now?

The short answer: Yes! But only if you know this simple hack.

The Key Takeaway: Start Now, Even If You’re Late

While starting early is always beneficial, the most important thing is to start now. Even if you didn’t invest in your early 20s, you can still build a large retirement corpus by using the right approach.

Is Rs 10 Crore Possible with a Simple SIP?

Let’s assume a 29-30-year-old professional earns a monthly take-home salary of Rs 50,000 and decides to invest 30 per cent of it (Rs 15,000) in a Systematic Investment Plan (SIP).

At an average 12 per cent annual return, here’s how their investments would grow over 30 years:

• Monthly SIP of Rs 15,000 for 30 years
• Total investment: Rs 54 lakh
• Final corpus: Rs 4.62 crore

This is much less than the Rs 10 crore target. Why? Because when you invest a fixed SIP amount, your money grows steadily but doesn’t take full advantage of compounding over a long period.

If you only invest Rs 15,000 per month without any increase, your returns are limited. But if you invest a lump sum upfront, that money gets more time to grow, allowing compounding to work more effectively. That’s why the Rs 10 crore goal is hard to achieve with just a fixed SIP alone.

But there’s a way to double this corpus!

The Hack: Combining Lump Sum (Upfront) & SIP

Instead of only relying on SIPs, start with a lump sum investment of Rs 5 lakh along with a reduced SIP of Rs 13,000 per month.

Here’s how this strategy changes the game:

New Scenario (Lump Sum + SIP Approach)

1. Lump sum investment of Rs 5 lakh grows to Rs 6.03 crore in 30 years at 12 per cent CAGR.
2. SIP of Rs 13,000 per month grows to Rs 4 crore in 30 years.
3. Total investment: Rs 46.8 lakh (less than the Rs 54 lakh in the first scenario).
4. Final corpus: Rs 10+ crore!

This one-time lump sum investment reduces the SIP burden while maximizing returns.

Proof: Has This Worked in the Past?

Let’s take an example. If someone had followed this exact strategy with Franklin India Bluechip Fund over the last 30 years, their Rs 5 lakh lump sum plus Rs 13,000 SIP would have grown to Rs 18.34 crore!

Why Does This Hack Work?

1. Lump Sum Gains Early Compounding – The Rs 5 lakh gets 30 years to grow, giving it a significant head start.
2. SIP Ensures Discipline & Consistency – Regular investments average out market fluctuations.
3. Market Valuations Matter – When markets are fairly valued, a lump sum investment allows you to enter at a reasonable price and benefit from long-term appreciation.

Conclusion

If you are 29-30 years old and aim for a Rs 10 crore retirement corpus, don’t just rely on a SIP. Kickstart your investment journey with a lump sum of Rs 5 lakh and a SIP of Rs 13,000. This combination can significantly boost your wealth over time while reducing the total investment required.

The earlier you start, the better—but even if you’re starting now, this hack ensures you don’t miss out on a comfortable retirement!

Disclaimer: This article is for informational purposes only and not an investment advice.