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How To Build A Rs 2 Crore Fund With A Salary Of Rs 50,000? Here’s The Plan
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Rising salaries should match rising SIPs, boosting fund growth and speeding financial goals. But stopping or withdrawing SIPs can shrink the fund and slow progress
Investing more than 20% of the monthly salary and redirecting annual bonuses to investments will expedite fund growth. (Representative/Shutterstock)
Individuals earning a monthly salary of Rs 50,000 can potentially build a substantial fund of Rs 2 crore through disciplined financial planning and investment. This seemingly challenging task can be achieved by adhering to a structured budget and consistent investment strategy.
The key is to manage spending wisely and allocate a fixed portion of the salary towards investments each month. To accomplish this, it is crucial to follow the 50-30-10-10 rule, which recommends dividing the salary into four parts for essential expenses, hobbies, savings, and investments.
For example, with a salary of Rs 50,000, Rs 25,000 (50%) should be allocated to essential expenses such as rent, utilities, children’s education, groceries, transport, and EMIs. These expenses are vital and must be prioritised.
Next, Rs 15,000 (30%) should be spent on hobbies and lifestyle activities, including outings, movie nights, online shopping, and dining out. This expenditure helps maintain a balanced and enjoyable life.
The third segment, Rs 5,000 (10%), should be dedicated to investments. This involves placing money in avenues like mutual fund SIPs, the stock market, gold, or PPF, where it can grow over time.
The final 10%, Rs 5,000, should be reserved for an emergency fund and insurance, offering a safety net during medical emergencies or unexpected expenses.
How Will The Rs 2 Crore Fund Be Raised?
To build a fund of Rs 2 crore from a salary of Rs 50,000, disciplined investment is essential. If Rs 5,000 is invested monthly in a mutual fund with an average annual return (CAGR) of 12%, it can grow to Rs 2 crore in approximately 31 years.
However, this timeline can be shortened. By starting with Rs 5,000 monthly and increasing the investment by 10% annually (Step-up SIP), the fund can reach Rs 2 crore in roughly 25 years with the same average CAGR of 12%.
Why Step-up SIP Matters Most
It is important to note that increasing investments annually as salaries rise accelerates fund growth, enabling quicker achievement of financial goals. Continuous investment is crucial; withdrawing funds or halting SIPs can diminish the fund’s size. Additionally, term and health insurance should be considered to safeguard investments against major financial setbacks.
For those aiming to achieve Rs 2 crore more swiftly, cutting back on expenses and increasing the investment amount is necessary. Investing more than 20% of the monthly salary and redirecting annual bonuses to investments rather than spending them will expedite fund growth. The earlier and more consistently investments are made, the faster the desired financial target can be reached.
September 15, 2025, 17:38 IST
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On the occasion, he also unveiled EPFO’s new and improved website — www.epfo.gov.in — designed with a simpler interface, better navigation, and easier access to essential services and information for all stakeholders.
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IndusInd International Holdings Limited acquires 60 percent of Invesco Asset Management India, forming a joint venture with Invesco.
IIHL, Invesco Launch AMC Joint Venture; IIHL Holds 60% Stake
IndusInd International Holdings Limited (“IIHL”), the promoter of IndusInd Bank, and Invesco Ltd. (“Invesco”) announced today that they have completed the formation of their asset management joint venture (“JV”) following IIHL’s acquisition of a 60% ownership stake in Invesco Asset Management India (“IAMI”) following all regulatory approvals and closing conditions. With Invesco retaining the balance 40% stake, both IIHL and Invesco will hold joint sponsor status under the regulatory framework.
As of September 2025, IAMI is the 16th largest domestic asset manager in India with combined onshore and offshore (through advisory) average assets under management of INR 148,358 crores for the quarter ending September 2025 and a presence in 40 cities across the country.
Both partners contribute their respective strengths to the venture, with Invesco offering its global investment management expertise and product range, while IIHL will support, through its promoted entity and subsidiaries, a robust distribution network comprising over 11,000 touchpoints across India and serving a customer base of 45 million. IIHL will also deploy the reach of several associate entities of its global shareholders that offer synergistic business operations to widen the customer base by another 50 million.
There will be no change in IAMI’s focus on investment excellence and exceptional client service. The JV will continue to operate under the same management led by Saurabh Nanavati, with the same disciplined and research-driven investment philosophy and processes that have been central to its investment offerings since 2008, ensuring strong continuity for investors, distributors, and other stakeholders.
Mr. Ashok Hinduja, Chairman, IIHL, said, “At IIHL, we are very enthused with this JV with Invesco, to augment our para banking portfolio by including Asset Management, and be a global financial (BFSI) powerhouse by 2030. This is the most opportune time, when India, on the back of rising income levels, favourable demographics, offers enormous investment prospects to all Indians, the diaspora included. We will endeavour to reach the last home, last investor transparently and efficiently and live up to investors’ expectation that mutual fund sahi hai”
Motilal Oswal Investment Advisors acted as the exclusive financial advisor to IIHL. Crawford Bayley and AZB acted as legal advisors to IIHL & Invesco, respectively.
Founded in 1993 under the visionary leadership of the late Shri S.P. Hinduja and his three brothers, IIHL is an investment holding Company well-regulated by the Financial Services Commission, Mauritius, under a Global Business License and is governed by the Board of Directors. Its investment portfolio under various Regulatory jurisdictions comprises Banking Services (IndusInd Bank, IIHL Bank & Trust Limited- Bahamas), Capital Market Assets (Afrinex Exchange Limited, Mauritius, with a cumulative listing of $13.5bn of underlying securities). Recently, it acquired the Insurance Businesses (Life, Non-Life, and Health) along with the Securities business of Reliance Capital Ltd to augment its portfolio.
IAMI began operations in India in late 2008 with the acquisition of Lotus India Asset Management Company and has since grown to serve over 2.9. million retail investor folios and over 48,000 empanelled distributors, with over 70% of its AUM in equity and equity-oriented assets. Invesco also operates an enterprise centre in Hyderabad employing more than 1,700 staff across a range of global support functions, including information technology, investment operations, finance, compliance, and human resources.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
November 02, 2025, 13:50 IST
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NEW DELHI: The impact of pre-GST revamp pause in sale of several products, such as automobiles and white goods, and the lower rates rolled out from Sept 22 slowed down the growth in gross GST receipts but the mop up remained close to the Rs 2 lakh crore-level, data for October showed. Official numbers released on Saturday showed GST collections in Oct for transactions in Sept totalled 1.96 lakh crore, an increase of 4.6% compared to Rs 1.87 lakh crore in October last year.This was the slowest pace of increase this fiscal. In Aug and Sept, GST collection rose 6.5% to Rs 1.86 lakh crore and at 9.1% to Rs 1.89 lakh crore. Gross domestic revenue grew 2% to Rs 1.45 lakh crore, while tax from imports rose nearly 13% to Rs 50,884 crore in October. The data showed GST refunds rose 39.6% year-on-year in Oct to Rs 26,934 crore.In Sept, GST Council had unveiled reforms to GST rate structure, which led to a sharp reduction in rates on a raft of items, bringing relief to consumers, and the latest data showed apprehensions of decline in collections have been negated.The rate cuts, effective September 22, have revived consumption demand, and experts said GST revenues for Nov are likely to show a sharp rebound.“Despite massive rate cuts effective from September 22, a slight increase in domestic GST collection is very encouraging and shows that demand is steadily increasing,” said Pratik Jain, Partner at consulting firm Price Waterhouse & Co LLP.“Consistent increase in GST refunds (domestic as well as exports) shows confidence of tax administration that GST collections would show positive trend in future as well. Next month’s data would have the full impact of GST cuts and would be keenly awaited,” added Jain.On the back of a fillip provided by a reduction in GST on 375 items, consumers had flocked to stores and car dealerships resulting in highest Navratri sales in over a decade, government officials had earlier said, citing industry data.“The GST collections, while aligning with immediate expectations, reflect a muted momentum in Sept primarily due to rate rationalisation effect in the majority part of the Sept month and the deferred consumer spending ahead of the upcoming festive season. This anticipated lag is likely to be compensated by more robust numbers in the next month, driven by seasonal buoyancy,” said Saurabh Agarwal, Tax Partner at EY India. “The impressive, high percentage growth in collections from states and UTs like Arunachal Pradesh, Nagaland, Lakshadweep and Ladakh is a tangible indicator of holistic economic development across India,” he said.
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