How to Build 10 Crores from stocks?

How to build 10 crores from stocks? Stock market can help us make crores? Is is possible?

When it comes to saving and investing, people are obsessed with the returns.

They are so crazy about generating returns that they have stopped asking basic questions.

Basic questions about what? About investment. What is the basic question?

How much money to invest in stocks?

There are other people who often ask this question too casually.

To know how much money to invest in stocks, mutual funds etc, one must first know how big corpus can be built.

Excessive focus on returns may sound great, but there are two other factors that are perhaps more important.

These two factors determine how much corpus gets built-up at the end of the investment horizon.

Without first answering these two basic questions, raising doubts on returns is like shooting in the dark.

The two factor that I am talking about are:

  1. The amount of money that is invested in the first place &
  2. The time period for which the most stays invested.

How to Build Rs.10 Crore in 40 years?

A more specific question will be, “How Much Money to Invest in stocks to generate Rs 10 Crore in 40 years“.

The above two factors, along with investment returns, decides how much money one ends up with.


Let’s suppose that one need to generate a total of Rs. 10 crores over 40 years.

One assumes that the return on investment will be @ 12.7% per year.

Over such longer period (40 years), earning 12.7% is possible.

If you pop the numbers in to excel, you’ll see that you have to invest just Rs. 7,960 per month.

Means, invest Rs.7.96K each month.

After 40 years, you will have a corpus of Rs.10 Crores.

How to Build Rs.10 Crore in 35 years?

A more specific question will be, “How Much Money to Invest in stocks to generate Rs 10 Crore in 35 years“.

Now imagine that you delayed an extra 5 years.

During these 5 years you were only on the spending mode.

It means, you virtually did no investment at all.


Now you find yourself with just 35 years to get your Rs. 10 crores together.

Return on investment will be the same @ 12.7% per year with stocks.

If you again pop the numbers in to excel, you’ll see that you have to invest a whopping sum of Rs.14,600 per month.

This is nearly two times the monthly amount required when investment horizon was 40 years.

Although we’ve only delayed the investment-start by only 12.5%, but our cost nearly doubled.

YearsMonthly InvestmentR.O.IInvestment Corpus after 40 years
407,96012.7%10 Crore
3514,60012.7%10 Crore
3027,00012.7%10 Crore
2550,00012.7%10 Crore
2094,60012.7%10 Crore

How to Build Rs.10 Crore in 20 years?

What if we did fancy our chances to get that higher investment returns.

I am talking about that investment return that would surely get us to our Rs. 10 crores in 20 years.

We can see in the above table that @ normal ROI of 12.7% per annum, required monthly investment is Rs 94,600 per month.

Well Rs. 94,600/month makes it nearly impossible for a common man to build Rs 10 crore in 20 years.

Well, what about getting to Rs. 10 crores in 20 years, @ higher rate of return?

This way we will have a smaller monthly investment contribution, right?

To generate Rs.10 crore in 20 years, one need to do the following:

  • Invest Rs.7,960 per month.
  • Generate ROI of 31.9% per annum.
YearsMonthly InvestmentR.O.IInvestment Corpus after 40 years
207,96031.9%10 Crore

It’s important remind ourselves here that these are only calculations on a piece of paper.

They only tell you what is possible in case you too have delayed your investment start.

All these calculation are based on certain assumptions.

These assumptions are more guess work & are more likely to change regularly.

The investment return one might actually experience may be different from what is assumed here.

Practical Example:

Let’s go back to the original example where we were expecting a return of 12.7% per annum and aiming to build Rs. 10 crores in 40 years.

In order to achieve this, we calculated that Rs 7,960 pm will be required.

Now let’s play a game to see what we can achieve by altering the expected return on investment.

Let me tell you, playing with R.O.I is really fun.

The only exception is what stock market really gives us is not what we assume.

Lets look at two possible scenarios – one good and one not so good.

Scenario 1 – Where Things go fine (ROI: 22% p.a.)

In the first scenario, we’ve actually managed an excellent investment return of 22% per year.

If you again pop the numbers in to excel, you’ll see that you have to invest just Rs.5,280 per month.

This will build Rs 10 Crore in 40 years.

Scenario 2 – Things go, not so well (ROI: 11.7% p.a.)

In the second scenario, we’ve actually managed an investment return of 11.7% instead of 12.7%.

That gives us a pot of investments worth Rs. 7.6 Crore in 40 years.

Though 7.6 Crore is again not a small amount but a deficit of Rs 2.4 Crore is not a small amount.

And why this deficit occurred?

Because our investment return was down just by 1%.

Anyways ways, it’s much better than doing nothing.


So coming back to our basic question of how much should you be investing in stocks?

What we can see from both the above scenarios is that, it is more important start investing early.

How much you should be investing is no longer a important question.

It actually depends on how much corpus you want to build and how long you are ready to stay invested.

When you started early you needed just Rs 7960 each month (12.7%).

When things worked well than our expectation (22%), we could achieve our target with just Rs 5280.

Where things had gone badly (11.7%) we ended up generating Rs 2.4 crore less.

No matter how good or bad the market/stocks behaved, but the best part was we were investing.

Had we were sitting idle doing nothing, probably we would have spent everything in buying useless things.

So get investing now!

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1 Comment

  1. Thanks Mani ,I believe your intent in this article was to show by example on multiple permutations and combinations and therefore you didn’t delved deeper into strategy.

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