Breaking Down the Goal

Saving ₹10 lakhs in 5 years (60 months) is a fantastic medium-term goal. Let's break it down to see what it takes. Simply saving the money would require you to put aside ₹16,667 every month (10,00,000 / 60). But we can do better by making our money work for us through investing.

The Roadmap: A 3-Step Strategy

Step 1: The Power of SIP

If you invest your money in a place where it can grow, you won't have to save as much from your own pocket. Let's assume a conservative 12% annual return from an investment in an equity mutual fund SIP. To reach ₹10 lakhs in 5 years with a 12% return, you would need to invest approximately ₹12,133 per month.

• Total Amount Invested by You: ₹12,133 x 60 = ₹7,27,980
• Estimated Returns Earned: ₹2,72,020
• Total Corpus: ₹10,00,000

As you can see, investing reduces your required contribution by over ₹4,500 per month! 👉 You can run your own scenarios with our SIP Calculator.

Step 2: Where to Invest?

For a 5-year goal, a balanced approach is best. You can't be too aggressive, but you also need returns that beat inflation.

• 70% in Equity: Consider a Flexi-cap or a Nifty 50 Index Fund. This will be the engine of your growth. (Approx. ₹8,500/month)
• 30% in Debt: You can use a Recurring Deposit (RD) or a Debt Mutual Fund for this portion to provide stability. (Approx. ₹3,600/month)

Step 3: Increase Your SIP Annually (The "Step-Up" Strategy)

If saving ₹12,133 per month seems difficult right now, you can start smaller and increase your investment amount each year as your salary grows. This is called a Step-Up SIP. For example, you could start with a SIP of ₹10,000 per month and increase it by 10% every year. Even with this smaller start, you'd reach your goal of ₹10 lakh in 5 years.

How to Stay on Track

• Automate Your Investments: Set up auto-debit for your SIPs so you never miss a payment.
• Track Your Progress: Use our Goals Calculator to set your ₹10 lakh target and monitor how close you are getting.
• Cut Unnecessary Expenses: Use our Money Manager to find where you can cut back to free up cash for your SIP.

Saving ₹10 lakh in 5 years is not about having a huge salary; it's about having a smart plan and the discipline to follow it. Start today!