How to Build a ₹1 Crore Retirement Corpus by Investing in 2025

Dhruv, a 25-year-old software engineer, was casually sipping his evening coffee when his dad, reading the newspaper, said,
 

 “Beta, retirement planning jaldi shuru karo... warna baad mein sirf afsos bachega.”

Dhruv laughed it off at first, but something clicked. "Retirement? Meri toh abhi salary aayi hai!" Still, out of curiosity, he opened a calculator app and crunched some quick numbers.
 

Turns out, agar wo ₹10,880 har mahine invest kare, toh 45 tak ₹1,00,00,000 ka fund ban sakta hai! 

But how? Can SIPs in mutual funds get him there? What about safe options like PPF or NPS? “Aur agar thoda late start hua toh? Ya phir sirf FDs pe bharosa kiya toh?”

Uski soch rocket ki speed se udne lagi – so many questions, so many options. But one thing was clear: he had to crack this code before time slipped away.

How did Dhruv plan his ₹1 crore retirement? Let’s find out in this blog.

Building a retirement corpus of ₹1,00,00,000 by investing in 2025 requires a strategic approach, considering your current age, investment horizon, risk tolerance, and expected rate of return. Here are several investment options to help you achieve this goal:​

1. Systematic Investment Plans (SIPs) in Equity Mutual Funds

Creating a retirement corpus of ₹1,00,00,000 is possible through Systematic Investment Plans (SIPs), which are an effective way to invest regularly in mutual funds. With SIPs, you invest a fixed amount every month, and over time, your money grows through the power of compounding.

Benefits of SIPs:

• Discipline & Regularity: SIPs help build the habit of investing regularly, which is crucial for long-term wealth creation.
  
  
• Rupee Cost Averaging: Since you invest every month, you buy mutual fund units at different NAVs (Net Asset Value), which averages out the cost of your investment.
  
  
• Power of Compounding: Over time, the returns you earn also start earning returns, helping your wealth grow faster.

Example: How to build a ₹1,00,00,000 corpus via SIPs

The following table shows how much you need to invest every month to build a ₹1,00,00,000 corpus, depending on the investment period and expected return:

This clearly shows: the earlier you start, the lower your monthly investment needs to be. For example, if you invest for 20 years, a monthly SIP of ₹10,880 is enough. But for just 10 years, you’d need to invest ₹44,640 every month.

2. Public Provident Fund (PPF)

Creating a ₹1,00,00,000 retirement corpus through Public Provident Fund (PPF) is a safe and tax-free option. PPF is a long-term investment scheme with a 15-year lock-in period, where you can invest from ₹500 to ₹1,50,000 per year. Currently (for April–June 2025), the interest rate on PPF is 7.1%.

Benefits of PPF:

• Tax-Free Returns: The amount you invest, the interest you earn, and the maturity amount – all are tax-free under Section 80C of the Income Tax Act. This makes PPF an EEE (Exempt-Exempt-Exempt) investment.
  
  
• Guaranteed Returns: Since PPF is backed by the government, it is a safe and reliable investment option.
  
  
• Flexible Investment: You can choose how much to invest each year – from ₹500 up to ₹1,50,000 – based on your convenience.

Example: How PPF can help you build ₹1,00,00,000

The following table shows how much maturity amount you can get with different investment durations if you invest ₹1,50,000 every year at 7.1% interest:

From this table, it is clear that to reach ₹1,00,00,000, you will either need to extend your investment duration or increase your annual contribution.

For example, if you invest ₹1,50,000 every year for 30 years, your maturity amount will be more than ₹1,50,00,000.

3. National Pension System (NPS)

Another option for creating a ₹1,00,00,000 retirement corpus is through the National Pension System (NPS), which is a beneficial and tax-friendly option. NPS is a government-backed voluntary retirement scheme that helps individuals systematically plan for retirement. You can contribute monthly or annually, and your money is invested in various assets like equity, corporate bonds, and government securities.

Key Benefits of NPS:

• Flexibility: You can choose how your money is invested based on your risk appetite, and you can also change your pension fund manager if needed.

   

• Tax Benefits: You get a tax deduction of up to ₹1,50,000 under Section 80C, and an additional ₹50,000 under Section 80CCD(1B).
  
   
• Portability: Your NPS account stays with you even if you change jobs or move to a different city, as it is valid across India.
  
  
• Low Cost: NPS has low fund management charges, which helps improve your returns over the long term.

Example: Building ₹1,00,00,000 with NPS

Here is how much you need to invest every month based on different durations and expected returns:

So, the longer you invest, the less you need to contribute monthly.

For example, if you invest ₹4,000 per month for 30 years at 10% returns, you can build a corpus of ₹91,00,000.

At retirement, you must invest at least 40% of the corpus in an annuity, which can give you a monthly pension of around ₹30,000.

Important Points:

• Start Early: The earlier you begin, the more you benefit from compounding.
  
  
• Annuity Rule: At retirement, it is mandatory to invest at least 40% of your NPS corpus into an annuity, which provides you with regular pension income.
  
  
• Partial Withdrawal: In special situations like education, house purchase, or medical emergencies, you can partially withdraw from your NPS account.
  
  
• Take Professional Help: Before investing, it is wise to consult a financial advisor who can guide you according to your goals and risk level.

NPS is a systematic and disciplined way to plan your retirement. With the right strategy and regular contributions, you can easily achieve your retirement goals.

4. Unit Linked Insurance Plans (ULIPs)

Creating a ₹1,00,00,000 retirement corpus with Unit Linked Insurance Plans (ULIPs) can be an attractive option. A ULIP is a financial product that offers both insurance and investment benefits in a single plan. The premium you pay is split into two parts:

• One part goes towards your life insurance cover
• The other part is invested in equity or debt funds to help grow your wealth.

Key Benefits of ULIPs:

• Dual Benefit: ULIPs provide life insurance + investment in one plan. This helps protect your family and also helps in saving money for your future.
  
  
• Tax Benefits: You can claim up to ₹1,50,000 deduction under Section 80C for ULIP investments. Also, the maturity amount is tax-free under Section 10(10D) if certain conditions are met.
  
  
• Flexibility: You can choose to invest in equity, debt, or balanced funds based on your risk level. You also have the option to switch between funds based on market conditions.
  
  
• Partial Withdrawal: After the lock-in period, you can withdraw some money from your ULIP to meet any urgent needs, giving you liquidity.

Example: Building ₹1,00,00,000 with ULIP

Here is how much monthly premium you need to pay to build ₹1,00,00,000, depending on time and return:

So, the longer you invest, the less premium you need to pay monthly to reach your ₹1,00,00,000 goal.

For example, if you invest ₹7,000/month for 30 years at 8% returns, you can build ₹1,05,00,000.

Important Points to Remember:

• Start Early: The earlier you start investing in ULIPs, the more time your money gets to grow through compounding.
  
  
• Understand Charges: ULIPs have various charges like premium allocation charge, fund management charge, mortality charge, etc. Understand and compare them to reduce their impact on your returns.
  
  
• Check Risk Level: ULIPs are market-linked, so they carry some risk. Choose your funds wisely based on your risk tolerance.
  
  
• Lock-in Period: ULIPs come with a 5-year lock-in, during which you cannot withdraw funds. So think of ULIP as a long-term investment.

ULIPs give you the combined benefit of life insurance and investment. If you invest regularly and choose your plan as per your financial goals, you can easily achieve your retirement target of ₹1,00,00,000 or more.

5. Fixed Deposits and Senior Citizen Savings Scheme (SCSS)

Creating a corpus of ₹1,00,00,000 for retirement through conservative investment options like Fixed Deposits (FDs) and the Senior Citizen Savings Scheme (SCSS) offers safe and assured returns. These options are suitable for investors who want to avoid risks and keep their money secure.

Senior Citizen Savings Scheme (SCSS) – (April-June 2025)

• Interest Rate: 8.2% per annum, with quarterly payout
• Eligibility: People aged 60 years or above
• Maximum Investment Limit: ₹30,00,000
• Tenure: 5 years (option to extend for 3 more years)
• Tax Benefit: Deduction of up to ₹1,50,000 under Section 80C

Fixed Deposits (FDs) – April 2025

Interest rates of some major banks:

Corpus Calculation Example

If you want to create a corpus of ₹1,00,00,000, here is how much you need to invest in SCSS and FD, assuming 20 years:

Important Considerations

• Inflation Impact: ₹1,00,00,000 today may have less value after 20 years. So, consider inflation while planning your investments.
  
  
• Diversification: Depending only on SCSS or FD is not advisable. Diversifying with options like equity mutual funds, PPF, and NPS helps reduce risk and increase returns.
  
  
• Regular Review: Review your investment portfolio every year to ensure it aligns with your retirement goals.

For conservative investors, options like SCSS and FD offer safe and assured returns. However, to build a ₹1,00,00,000 corpus, combining them with other investment options is a better strategy.

Conclusion

Building a retirement corpus of ₹1,00,00,000 is a realistic goal if you start investing early and choose the right options. Systematic Investment Plans (SIPs) in equity mutual funds are a great way to grow your money over time, especially if you begin early and stay consistent. 

Public Provident Fund (PPF) is another safe option with tax-free returns, but it takes longer to reach ₹1,00,00,000 unless you increase your contributions. The National Pension System (NPS) is good for retirement planning with tax benefits. 

ULIPs combine insurance and investment, but they come with charges and market risks, so they need careful selection. Fixed deposits and the Senior Citizen Savings Scheme (SCSS) are safe but may not beat inflation, so they should be part of a bigger plan. 

The key is to start as early as possible, stay patient, and mix different investments to balance risk and returns.

FAQs

1. How much should I invest monthly to reach ₹1,00,00,000 in 20 years?

If you invest in equity mutual funds with an expected 12% return, you need around ₹10,880 per month. Starting early reduces the monthly investment needed.

2. Can PPF alone help me build ₹1,00,00,000 for retirement?

Yes, but it will take around 30 years with a ₹1,50,000 yearly investment at 7.1% interest. For faster growth, consider adding other investments.

3. What is the benefit of NPS for retirement planning?

NPS offers tax benefits and market-linked returns, but 40% must be used to buy a pension. Investing ₹6,000/month for 25 years can grow to ₹76,00,000.

4. Are ULIPs a good option for retirement savings?

ULIPs provide insurance and investment, but they have charges and risks. Investing ₹7,000/month for 30 years at 8% can give ₹1,05,00,000.

5. Can fixed deposits help me reach ₹1,00,00,000 safely?

Yes, but due to lower returns (around 7-8%), you need a bigger initial investment. A mix of FDs and other options works better for long-term growth.

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