Wealth creation is a journey that requires discipline, patience, and a well-constructed investment plan. A corpus of Rs 10 million may seem very high, but with a systematic approach and the power of compound interest, it is achievable. In this article: How to create a 100-crore mutual fund portfolio by investing 25,000 rupees in mutual funds every month. We also discuss strategies, financial recommendations, and tips to accelerate your wealth creation journey.
Why aim for 1 billion rupees?
10 million rupees in assets provides financial security and freedom to pursue your dreams. This goal can open up endless possibilities, including early retirement, starting a business, and achieving financial independence. As inflation reduces purchasing power, striving for wealth will ensure that your assets remain valuable in the future.
SIP for compound interest in asset formation
A Systematic Investment Plan (SIP) allows you to invest a fixed amount in mutual funds on a regular basis with the benefit of cost averaging and compounding power of Rs. For example:
- Monthly investment: 25,000 rupees
- Investment period: 31 years
- Expected annual revenue: 12%
- Future value: 10 billion rupees
- Required investment period for 15% return: 26 years
Investing in a disciplined and long-term manner can earn you such high wealth. If you are new to these mutual funds, A beginner’s guide to exploring mutual funds beginning.
Recommended portfolio allocation
A diversified portfolio is necessary to maximize returns while managing risk. The recommended allocation for Rs 25,000 SIP is as follows:
#1 – Large Cap Fund (30%)
Large-cap funds invest in established companies with a proven track record, providing stability and steady growth.
Recommended funds:
- Japan India Large Cap Fund
- Invesco India Large Cap Fund
#2 – Mid-cap fund (25%)
Mid-cap funds target companies with high growth potential and offer higher returns with moderate to high risk.
Recommended funds:
- Motilal Oswal Midcap Fund
- Invesco India Midcap Fund
Let’s take a closer look at Top 5 mid-cap mutual funds to invest in in 2025
#3 – Small Cap Fund (20%)
Small-cap funds focus on small and medium-sized companies with significant growth potential. Although these funds are risky, they can provide exceptional returns over the long term.
Recommended funds:
- Indian Bank Small Cap Fund
- Japan India Small Cap Fund
#4 – Flexicap Fund (15%)
Flexicap funds offer the flexibility to invest across market capitalizations, balancing risk and reward.
Recommended funds:
- Parag Parikh Flexicap Fund
- JM Flexi Cap Fund
#5 – International Fund (10%)
Investing in international funds provides geographic diversification and exposure to global markets.
Recommended funds:
- Motilal Oswal Nasdaq 100 Fund of Funds
Most of the funds mentioned above have been mentioned in previous articles. Top 10 investment trusts to invest in for the long term in 2025.
Strategies for wealth creation
Step 1: Start early
Time is the greatest channel for wealth creation. Starting early gives you more time to take advantage of the power of compound interest and grow your investments.
Step 2: Increase SIP gradually
As your income increases, increase your SIP amount by 10-15% every year. For example, if you start with Rs 25,000 and increase it by 15% every year, your corpus will grow significantly.
Step 3: Choose the right fund
Choose funds with stable performance, experienced fund managers, and low expense ratios. Review and rebalance your portfolio regularly. You should regularly check whether you are investing Worst performing mutual funds over the past year.
Step 4: Stay invested
Market fluctuations are normal. Stay invested and avoid reacting to short-term volatility. Focus on long-term goals.
Step 5: Diversify across asset classes
Stock funds are important for wealth building, but consider adding bond funds or gold ETFs for stability and diversification.
Impact of increasing SIP by 20% annually
If you start with Rs 25,000 SIP and increase it by 20% every year, your corpus can grow rapidly. Assuming an annual return of 12%:
- 10 years: 1.26 billion rupees
- 15 years: 4.1 billion rupees
- 20 years: 120.1 billion rupees
This strategy allows you to build wealth quickly without the need for large initial investments.
Can we generate 10 million rupees early?
10 years
- Monthly SIP required: 430,000 rupees
- Recommended strategy: We actively invest in high-risk, high-return funds such as small-cap stocks and sector funds. Be willing to take risks.
15 years
- Monthly SIP required: 200,000 rupees
- Recommended strategy: Maintain a balanced portfolio of large-cap, mid-cap, and small-cap funds.
20 years
- Monthly SIP required: 100,000 rupees
- Recommended strategy: Again, maintain a balanced portfolio of large-cap, mid-cap, and small-cap funds.
Sample investment trust portfolio
An example of a monthly SIP allocation of Rs 25,000 is as follows:
| Fund category | Fund name | Allocation (Rs) |
| large cap fund | Japan India Large Cap Fund | 7,500 |
| Invesco India Large Cap Fund | ||
| mid cap stock fund | Motilal Oswal Midcap Fund | 6,250 |
| Invesco India Midcap Fund | ||
| small cap fund | Japan India Small Cap Fund | 5,000 |
| Indian Bank Small Cap Fund | ||
| flexicap fund | Parag Parikh Flexicap Fund | 3,750 |
| international fund | Motilal Oswal Nasdaq 100 FoF | 2,500 |
Important points
- Start early: Time is the most important factor in wealth creation.
- Diversify wisely: Allocate investments across categories to optimize the balance of risk and reward.
- Stay disciplined: Consistency and perseverance are essential for long-term success.
- Please check regularly: Monitor your portfolio and make adjustments as needed.
- Leverage SIP growth: Increase your SIP gradually to accelerate wealth creation.
Final thoughts: Creating a Rs 100 crore mutual fund portfolio with a monthly SIP of Rs 25,000 is not only achievable but also realistic with the right strategy. By starting early, being disciplined, and diversifying your investments, you can unlock the power of compound interest and reach your financial goals.
Happy investing! !
