How to Build a ₹1 Crore Corpus by Age 40: Expert Shares Practical Strategy

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In today’s era, young professionals are becoming increasingly aware of the importance of savings and investments. Many aim to accumulate a substantial corpus for retirement, ideally reaching ₹1 crore by the age of 40. Financial planner Milind Devgaonkar has shared insights on how this ambitious goal can be realistically achieved.

Devgaonkar notes that reaching ₹1 crore by 40 is possible only when investors focus on consistent investing rather than chasing high returns. In a recent LinkedIn post, he explained that building a crore-rupee fund by 40 is not easy for most young adults and requires discipline over the long term.

“I often hear from clients in their early 30s that they want to become crorepatis by 40,” Devgaonkar said. He added that many give up on investing long before seeing substantial results. “Most people fail to continue investing for 15 years. In my experience, six out of ten investors stop their SIPs within three to five years,” he said.

The Path to ₹1 Crore
According to Devgaonkar, investors often withdraw funds due to reasons such as marriage, home purchases, car upgrades, or job changes. “While the math looks good on paper, the real challenge is staying invested even amid job loss, market downturns, or family emergencies,” he emphasized.

For example, if someone starts investing at 25 with an annual income of ₹12 lakh, they would need to invest around ₹21,500 per month in SIPs—roughly 25% of their in-hand salary—assuming a 12% annual return (CAGR). Over 15 years, this disciplined approach can help them accumulate ₹1 crore.

However, starting later increases the challenge. A 30-year-old earning ₹18 lakh annually would need to invest ₹45,000 per month—around 37% of their take-home pay—to reach the same target in 10 years. While achievable, it requires strict discipline and significant lifestyle adjustments.

Discipline Over Returns
Devgaonkar stresses that consistent investing is more important than chasing high returns. “I’ve seen clients who stop SIPs during market downturns, hoping for 15% returns later. Eventually, they end up with less than those who consistently earned 12%,” he said.

Accounting for Inflation
He also highlights the importance of factoring in inflation. “₹1 crore at 40 may seem substantial today, but with a 6% inflation rate, it would be equivalent to around ₹55 lakh in today’s terms,” Devgaonkar noted.

In conclusion, early initiation, consistent investing, and disciplined lifestyle choices are the keys to building a substantial financial corpus. Starting early, even with smaller amounts, is more effective than starting later with larger investments.