How To Build a Rs 50 Lakh Equity Portfolio by Age 50 If You Start at 35 — Even With a Modest Salary…

Dr. Vikas V. Gupta, CEO & Chief Investment Strategist, OmniScience Capital, has offered 3 approaches to achieve the goal. His insights on long-term investing and SIP-based wealth creation were recently featured in GoodReturns, one of India’s top personal finance platforms.

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“Let’s consider the case of Ajay Pal, a 35-year-old earning Rs 50,000 per month. His goal is clear: to accumulate at least Rs 50 lakh by the time he turns 50. With just 15 years to go and limited income, equities – despite being high-risk – are realistically the only asset class that can offer the required growth. For illustration purposes, let’s assume an average annual equity return of 12%. If one were to assume lower returns, say 10%, the savings required would naturally increase,” said Dr. Vikas V. Gupta, CEO & Chief Investment Strategist, OmniScience Capital.

As per Vikas V. Gupta, here are the 3 approaches to achieve the goal.

Approach 1:

Start Small, Stay Consistent Ajay begins investing Rs 10,000 per month (20% of his salary) in a systematic investment plan (SIP) in equity mutual funds. Over 15 years, this monthly SIP, compounded at 12% annually, grows to Rs 47.5 lakh. If he adds an initial lumpsum investment of Rs 1 lakh, which grows to around Rs 5.5 lakh in the same period, his total corpus reaches approximately Rs 53 lakh. A disciplined and consistent investor can thus comfortably cross the Rs 50 lakh target with this approach.

Approach 2: Lower SIP, Add Step-Up Increases Suppose Ajay is only able to save 10% of his income, i.e., Rs 5,000 per month. To bridge the gap, he uses a step-up SIP strategy – increasing his SIP amount by 10% every year. In addition, he invests a lumpsum of Rs 2 lakh, which grows to about Rs 11 lakh in 15 years. The step-up SIP contributes approximately Rs 41 lakh, bringing the total to around Rs 52 lakh. This approach is ideal for those who expect their income to grow steadily and can commit to increasing their savings annually.

Approach 3: Flat SIP Without Lumpsum Let’s consider a more basic route. If Ajay commits to a flat Rs 10,000 monthly SIP without any initial lumpsum investment, he will still reach close to Rs 54.7 lakh by age 50, assuming the 12% return remains consistent throughout. Each of these strategies proves that even on a modest income, long-term equity investing can help achieve substantial wealth. The key lies in starting early, staying consistent, and allowing your investments to compound over time. Tools like step-up SIPs, one-time investments, and equity discipline can bridge the gap between limited income and ambitious goals. Ultimately, the journey to financial independence isn’t about how much you earn – it’s about how wisely you invest.

Please Read more at: https://www.goodreturns.in/personal-finance/investment/how-to-build-a-rs-50-lakh-equity-portfolio-by-age-50-if-you-start-at-35-even-with-a-modest-salary-1437349.html