How to Make 1 Lakh to 1 Crore | Investment Strategies & Insights

showing the transformation from 1 Lakhpathi to Crorepati, symbolizing financial growth and success

showing the transformation from 1 Lakhpathi to Crorepati, symbolizing financial growth and success

Have you ever dreamt of becoming a crorepati, with wealth ranging from ₹1 lakh to ₹1 crore? It’s an ambitious goal, but achieving it requires a well-defined strategy. While fixed deposits (FDs) are a safe investment option, there may be more effective approaches than relying solely on them. Fixed deposits offer security and guaranteed returns. However, their interest rates typically range from 5% to 8%, which can be lower than the historical inflation rate in India. This means the purchasing power of your money may decrease over time. Additionally, reaching a crore through FDs alone would likely require decades of investment.

So do you want to know the strategy to become a Crorepati? Read Further!

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Investment Strategy: The Power of Diversification

The key to building wealth lies in diversification. This means spreading your investments across various asset classes with varying risk-return profiles. Here’s a potential breakdown:

  • Low-Risk (Stability): A portion in FDs or debt funds for stability.
  • Medium-Risk (Growth Potential): A portion in balanced mutual funds or large-cap stocks for the growth potential.
  • High-Risk (Optional): A smaller portion in small-cap stocks or sector-specific funds for potentially higher returns, but with greater risk.

The diverse portfolio strategy proposes allocating your annual investment (Rs. 1 lakh) across different risk categories. The table below shows the investment allocation on diverse portfolio and average returns (Hypothetical Scenario):

Category Investment Type Investment Amount Risk Level Average Return
Low-Risk Fixed Deposits (FDs) / Debt Mutual Funds ₹50,000 Low 6%
Medium-Risk Balanced Mutual Funds / Large-Cap Stocks ₹25,000 Medium 10%
High-Risk Small-cap stocks / Sector-Specific Funds ₹25,000 High 15%
Total= ₹1,00,000

Disclaimer: This is a fixed allocation and may not adapt to your changing risk tolerance or financial goals. Adjust the allocation as needed.

Also Read: Crorepati Strategy To Turn 5,000 into 1Crore With SIP

Investment Growth Through Fixed Deposits vs. Diversified Portfolio

While fixed deposits (FDs) are a secure investment option, relying solely on them to become a crorepati is a challenging strategy.  You can use an FD Calculator to estimate the potential growth of your investment over the years. Just enter the amount you want to invest in fixed deposit (FD), the interest rate, the tenure in years (the period of FD), and check the maturity amount as displayed by the calculator.


Let’s take a hypothetical scenario to illustrate how you can grow 1 lakh to 1 Crore by comparing the investment methods such as Fixed Deposit and Diverse Portfolio for over 20 years.


  • Fixed deposit interest rate: 8% (compounded annually)
  • Diversified portfolio average return: 12% (compounded annually)
  • This is a hypothetical scenario for illustrative purposes only. Actual returns may vary.
Investment Period (Years) Fixed Deposit (for  8% interest) Diversified Portfolio (Average 12% return)
1 1,08,000 1,12,000
5 1,46,933 1,97,392
10 2,15,899 4,87,216
15 3,18,071 12,00,678
20 4,66,560 1,44,14,08 (Crorepati!)

Note: The results are estimates and don’t guarantee future performance. Consulting a financial advisor is recommended for personalized investment advice.

From the above table, we understand that in 20 years you can only get returns of around ₹4.6 Lakhs through Fixed deposit whereas by using the diversified portfolio strategy, you can get returns of around ₹1.4 Crore. This is due to the potentially higher returns offered by asset classes like stocks, shares, and mutual funds.

Also Read: NSC Scheme to Grow 10000, 25000, 50000 Investment to 14490, 36226 & 72452

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Return on Investment: Compounding vs. Non-Compounding

Here, we explore the stark difference between compounding and non-compounding when aiming for this milestone.

  • Target Amount: ₹1 Crore
  • Investment Period: We’ll explore different scenarios

Scenario 1: Method of Compounding

Compounding allows your returns to generate even more returns over time.

Investment Required through Compounding:

We can use the Future Value (FV) formula to calculate the required annual investment:

FV = P * (1 + r)^n


  • FV – Future Value (Amount you want to reach – ₹1 crore)
  • P – Present Value (Annual Investment amount)
  • r – Interest rate per year (as a decimal) – Replace 10% with 0.1 in this case
  • n – Number of years

Let’s assume Annual Return: 10%

P = FV / (1 + r)^n

P = ₹1,00,00,000 / (1 + 0.1)^n

  • With a 10% annual return and compounding, you’d need to invest significantly less each year to reach ₹1 crore.
  • 20 Years: Investment might be around Rs. 21,589 annually.
  • 30 Years: Investment might be around Rs. 8,137 annually.

Note: Calculate for different timeframes using a financial calculator or online tools.

Scenario 2: Non-Compounding Method

Non-compounding means your returns are not reinvested and don’t grow your principal amount. This approach requires a much larger annual investment.

Let’s assume you’d need to simply save the amount you want to reach (₹1 crore) divided by the number of years.

Investment Required without Compounding:

P = FV / n

P = ₹1,00,00,000 / n

Assumption: Annual Return: 10%

  • 20 Years: The investment would be a significant ₹5,00,000 annually.
  • 30 Years: The investment would still be a high ₹3,33,333 annually.

As you can see, compounding makes a massive difference in reaching your ₹1 crore goal. With compounding, you can invest a smaller amount annually and still achieve your target in a shorter timeframe.

Also Read: 6 Best Post Office Saving Schemes To Double The Money

To Wrap Up!

While fixed deposits (FDs) offer stability and guaranteed returns, reaching crorepati status solely through FDs, ranging from 1 lakh to 1 crore, requires a significant investment and a long time horizon. However, this strategy offers a framework for building wealth through regular investing and diversification. Remember to adjust the allocation based on your risk tolerance and financial goals.

So why wait? Start Your Crorepathi journey today!

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Frequently Asked Questions

Q. Is reaching 1 crore possible only through fixed deposits (FDs)?
No, relying solely on FDs will not make you a crorepati in a reasonable timeframe. FDs offer stability but typically have lower returns compared to inflation.

Q. Which is the best investment for ₹1 lakh?
There’s no single “best” investment. It depends on your risk tolerance, investment horizon, and financial goals. Consider a diversified approach across asset classes like fixed deposits (FDs) for stability, mutual funds for growth, and potentially stocks for higher returns (with higher risk).

Q. How to make ₹1 crore in 5 years by investing?
Making 1 lakh to 1 crore in 5 years is challenging and might involve significant risk. Focus on realistic goals and a long-term strategy. This blog explores the power of consistent investing and diversification for wealth-building over time.

Q. Where to invest ₹1 crore for the best returns?
Asset allocation is crucial. Consider a mix of investments based on your risk tolerance. A financial advisor can help create a personalized plan for your ₹1 crore.

Q. How to earn 12% interest?
Some fixed deposits or debt funds may offer around 8% interest but are not guaranteed 12%. Explore various investment options with their associated risk-return profiles.

Q. Which investment gives the highest return?
Generally, investments with higher potential returns also carry higher risk. Stocks can offer high returns but also come with a greater risk of loss. Diversification helps balance risk and reward.

Q. What is the rule of 72/8?
The rule of 72 (or 72/desired return) is a simplified estimate to calculate how long it might take to double your money. It’s not an exact formula, but a helpful rule of thumb.

Q. How to become a crorepati easily?
There’s no easy way to become a crorepati. However, consistent investing, diversification, and a long-term strategy can significantly increase your chances.

Q. How many Indians earn more than ₹1 crore?
The exact number is difficult to pinpoint, but it’s a relatively small percentage of the population. Focus on building wealth gradually through smart investing, rather than chasing quick riches.