Then using, Groww SIP calculator, you would be required to do a monthly SIP of Rs 809000 approx, every month to reach 1 Crore in a year.
Since you are looking to grow this wealth in a shorter duration, investing in liquid funds is advisable. They allow you instant access to your investments with no exit load . The redeemed amount gets credited to your bank account within 1-2 days from the request. Based on past performance, here are the best liquid funds you can invest in to achieve your target.
Case 2 : Investment horizon is 3-5 years
If you have a horizon of 3-5 years, it is advisable to invest in hybrid funds or large cap funds. Large cap funds are good for investors who want exposure to equity yet are conservative risk-takers. Since the duration is just 5 years, exposure to mid cap or small cap funds may lead to increased risk. Since these schemes invest in financially strong large-cap companies, they can withstand a slowdown in the markets.
The other category of funds you can invest in is hybrid funds. They offer better returns than debt but are safer than equity and hence a good option for low risk-takers as well as investors investing for a short to medium duration. They allow investors just the right amount of exposure to equity while cushioning them against extreme market volatility with debt funds.
Now for a medium-term duration, let us assume the expected rate of return on your investments is 9%.
To accumulate a corpus of Rs 1 Crore in 5 years, with an expected rate of return as 9 %, you would have to start a monthly SIP of Rs 131597 per month.