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.

 

Last Updated:October 28, 2025, 10:11 IST

MCX delayed trading to 10:00 AM on Tuesday due to a technical glitch, as announced in an early morning notice by the Multi Commodity Exchange.

MCX Glitch: The Multi-Commodity Exchange (MCX) faced a technical glitch on Tuesday, preventing the start of trading. Earlier, the exchange had announced that trading would begin at 10:00 AM following the issue, but it did not resume as planned.

MCX is yet to confirm a new time for the commencement of trading.

“Update as on 09:45 AM-Members are requested to note that the trading will start at 10 AM due to technical issue. Trading will start from DR. Inconvenience is regretted,” MCX informed in the update.

This is not the first time MCX has faced such an issue. Earlier this year, MCX faced a similar technical issue in July when the trading began at 10:15 AM, a delay of more than an hour.

The Multi Commodity Exchange of India (MCX) is the country’s largest commodity derivatives exchange, providing a platform for trading in commodities such as gold, silver, crude oil, natural gas, and various agricultural products. Established in 2003 and headquartered in Mumbai, MCX operates under the regulatory framework of the Securities and Exchange Board of India (SEBI). It plays a crucial role in India’s commodities market by enabling price discovery, risk management, and hedging for participants ranging from traders and investors to producers and exporters. MCX’s benchmark contracts—like gold and crude oil futures—are widely used to gauge market sentiment and global commodity trends.

On July 23, trading on MCX was initially expected to resume by 9:45 AM, but the exchange later revised the opening time to 10:10 AM, but trading did not resume as planned. It finally began trading from 10:15 AM after a delay caused by clearing technical processes and file sharing.

(This is a developing story. To be updated)

Varun Yadav

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

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