New Delhi: Many Indians dream of retiring with Rs 1 crore in their savings. While that goal might sound big, even a modest investment of Rs 10 lakh can grow into Rs 1 crore — if invested smartly and given enough time. Whether you’re nearing retirement or just starting your planning, understanding how compounding works can help you achieve this milestone comfortably.

How Compounding Turns Rs 10 Lakh Into Rs 1 Crore

Compounding is the process where your money earns returns, and those returns in turn start earning more returns over time. This snowball effect helps smaller investments grow into big amounts over the years.

Here’s how long it takes for Rs 10 lakh to become Rs 1 crore at different rates of return:

Annual Return Years to Reach Rs 1 Crore

6 percent 40 years

8 percent 29 years

10 percent 24 years

12 percent 20 years

15 percent 16 years

So, if you invest Rs 10 lakh in an option that gives 10 percent annual return, your money will grow to Rs 1 crore in about 24 years. However, if you manage to get 12% returns, you can reach Rs 1 crore in just 20 years — possibly before your retirement.

Example Calculation (10 percent Annual Return)

Let’s take a detailed example:

Initial Investment: Rs 10,00,000

Annual Return: 10 percent

Time: 24 years

Formula:

Future Value = Principal × (1 + r)^t

= Rs 10,00,000 × (1.10)^24

= Rs 10,00,000 × 9.84

= Rs 98,40,000 (approximately Rs1 crore)

This is the magic of compounding — your money multiplies almost 10 times without you having to add more capital.

Best Investment Options To Achieve Rs 1 Crore Goal

To reach Rs 1 crore before retirement, the choice of investment is crucial. Here are some popular options for different age groups and risk levels:

1. National Pension System (NPS)

Ideal for long-term retirement planning. NPS offers returns between 9 percent–12 percent depending on your equity allocation. If you invest Rs 10 lakh at 10 percent for 24 years, you’ll crossRs 1 crore comfortably.

2. Equity Mutual FundsThese are suitable for investors with moderate-to-high risk appetite. Historically, equity mutual funds have delivered 12–15 percent returns, meaning your Rs 10 lakh can become Rs 1 crore in 16–20 years.

3. Senior Citizens Savings Scheme (SCSS)

If you’re already retired, SCSS offers 8.2 percent returns (as of 2025). While it may not reach Rs 1 crore quickly, it’s safe and offers regular income.

4. Balanced Advantage or Hybrid Funds

These funds balance risk and reward by investing in both stocks and debt instruments, typically offering 9–11 percent returns. Ideal for those nearing retirement.

Tips For Reaching Rs 1 Crore Faster

Start early — the more time your money gets, the stronger compounding becomes.

Reinvest your earnings instead of withdrawing them.

Diversify across equity, debt, and pension funds.

Review your portfolio every year.

Final Takeaway

Turning Rs 10 lakh into Rs 1 crore isn’t a dream — it’s a calculation. With 10–12 percent consistent returns, you can achieve it in 20–24 years, well before retirement. Compounding rewards patience, and the earlier you start, the richer your retirement can be.

 

HSBC reported pre-tax profits of 7.3 billion US dollars (£5.5 billion) for the third quarter – a drop of 1.2 billion US dollars (£898 million) on the same period 12 months ago.

The announcement comes a day after the banking giant revealed it will set aside 1.1 billion US dollars (£826 million) following a court ruling related to a long-running lawsuit brought by investors who lost money in Bernard Madoff’s investment fraud.

The British lender said the drop in profits compared to 2024 “reflected an increase in operating expenses” during the third quarter which included legal provisions of 1.4 billion US dollars (£1.04 billion), the bulk of which was related to the Madoff lawsuit.

Profits after tax also fell 1.2 billion US dollars (£898 million) to 5.5 billion US dollars (£4.1 billion) for the third quarter.

Group chief executive Georges Elhedery said the bank remained “fully focused on helping our customers navigate new economic realities”.

He said: “We are becoming a simple, more agile, focused bank, built on our core strengths. The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters.”

The provision to set aside money for Madoff investors came after the bank lost part of an appeal in a Luxembourg court ruling last Friday.

It follows a case brought by Herald Fund SPC, which in 2009 sued HSBC Securities Services Luxembourg (HSSL), claiming losses of cash and securities linked to Madoff’s Ponzi scheme, which was one of the largest financial scandals in history.

Last week, the Luxembourg Court of Cassation rejected HSSL’s appeal on Herald’s securities restitution claim, but upheld its appeal concerning the cash restitution claim.

HSSL now plans to pursue a second appeal before the Luxembourg Court of Appeal to contest the amount it may be required to pay.

Madoff, who died in prison in 2021, admitted in 2009 to defrauding thousands of investors of around 65 billion US dollars (£48.8 billion).

Various HSBC companies had been named as defendants in lawsuits arising out of the Madoff fraud scandal.

Herald Fund SPC is a European fund that put money into Madoff investment funds, for which HSBC’s Luxembourg securities arm, HSSL, was the custodian.