Happy Friendship Day 2025: 3 Reasons Why To Be Friends With Your Money; How To Build Rs 1 Crore At Retirement

It's Friendship Day all over the world on August 3, 2025. This day is special for friends who are always there for each other, sharing both happy and sad moments. However, there is another kind of friend who works as magic: your friend in need, your haven in hard times, your happy pill, and your support system in all ups and downs. This kind of friendship should be built on mutual trust and respect, not on financial gain. An investment that is started early with a promise to make an independent future, especially in your retirement.

That being said, here's why on this friendship day, you should start to build a strong, fruitful relationship with your money.

According to Nippon India Mutual Fund's website, there are three reasons why you should be friends with your money:

1. A true companion in good as well as bad times:

Just like a good friend, properly managed finances will not only help you fulfil your dreams but will also protect you during a crisis. You can build such a corpus by investing in mutual funds such as liquid funds. When the market is high, a good mutual fund scheme will get you high returns, and in case of a market crisis, your investments will be protected by controlling the losses.

2. Money will always have your back:

A true friend is one we can trust and know will have our back when the time comes. Similarly, your savings can take over the situation when you need it the most and save you from any future debts or financial crisis.

3. Helping without any grudges and expectations:

It may happen when you want a distance and a break from a friendship during certain situations. And a good friend will respect your space without holding any grudge. Much like a great friend, your savings through mutual funds will also let you move on to different schemes to fulfil different financial goals. That too, without asking any questions or without holding any grudges. So you can save more and fulfill your dreams while saving for the future.

When we talk about mutual funds, the word Systematic Investment Plan (SIP) pops up in our minds frequently. SIPs are very flexible, easily available, hassle-free and disciplined form of investment.

What Are SIPs?

Systematic Investment Plan (SIP) is an investment plan (methodology) offered by Mutual Funds wherein one could invest a fixed amount in a mutual fund scheme periodically, at fixed intervals - say once a month, instead of making a lump-sum investment, as per AMFI FAQs.

SIP has been gaining popularity among Indian MF investors, as it helps in Rupee Cost Averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market. Systematic Investment Plans offered by mutual funds are easily the best way to enter the world of investments over the long term, the FAQs added.

SIP Calculator:

To build a corpus of Rs 1 crore, three factors are important to take into consideration. The amount of investment per month, the number of years, and the rate of return. It depends on what age you start and at what age you plan to achieve Rs 1 crore. Hence, accordingly, you decide upon your investment per month in SIPs.

For example, if you are in your 30s and plan to achieve a Rs 1 crore corpus in the next 20 to 25 years, then your monthly SIP could range from Rs 8,000 to Rs 10,000.

Rs 8,000 SIP Per Month:

For example, if you're doing an SIP of Rs 8,000 per month for the next 20 years, then your investment amount would be Rs 19.20 lakh for the entire period. Your profit would be around Rs 60,73,183. And your total corpus will be Rs 79,93,183.

But if we plan to invest Rs 8,000 per month for the next 25 years, and expect 12% returns per annum in mutual funds. Then your investment amount would be Rs 24 lakh, while your profit would come around Rs 1,27,81,081. And your total corpus would be Rs 1,51,81,081 or over Rs 1.51 crore.

Rs 10,000 SIP Per Month:

At an expected 12% returns per annum, your Rs 10,000 SIP per month for 20-year period will lead to a total invested amount of Rs 24 lakh. While the gains will be Rs 75,91,479, the total corpus will be Rs 99,91,479.

But if we increase the number of years for SIPs, then Rs 10,000 per month for 25 years will lead to a total investment of Rs 30 lakh. At 12% returns projection, the gains will be Rs 1,59,76,351, and total corpus will be Rs 1,89,76,351.

Note: The SIP Calculator and Image Source is SBI Securities website.

Why Mutual Funds Are Ideal for Building a Corpus of Rs 1 Crore?

Repaka Pavan Aditya, a stocks and mutual funds research analyst at ClearTax, said that mutual funds provide a disciplined, flexible, and professionally managed investment avenue. The SIP facility also increases convenience for retail investors by allowing them to invest small amounts periodically. With ample time and regular contributions, mutual funds provide a practical method to build massive wealth through the compounding benefit.

He also highlighted the factors to take into consideration fro a Rs 1 crore corpus. These are:

1. Time Horizon: The number of years the investor wants to stay invested. Longer durations give compounding benefits.

2. Expected Annual Return: Returns depend on the type of fund:

- Equity funds: 12-15 per cent
- Hybrid funds: 8-10 per cent
- Debt funds: 6 per cent

3. Monthly SIP Amount: The contribution is made every month. It varies based on the chosen time frame and expected return.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author, GoodReturns.In nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.