# How to beat One crore wealth with just 1 lakh investment?

One crore wealth can be beaten with just 1 lakh investment. Yes, it can be done if you do your asset allocation right and get a higher return by following the right investment strategy based on your risk tolerance and financial situation.

Read this complete article to know more details.

In childhood, I thought a few times about how I can be richer than my neighbors.

You may have also thought like this in your life.

Is it really possible to become wealthier than your neighbors, friends, and relatives?

Let’s understand this first with an example.

If you see the above image, a thief is running at a speed of 30 km speed.

In addition, a policewoman is running behind him to catch at a speed of 60 Km speed per hour.

However, the distance between them at present is 30 Km.

Here, the policewoman will catch the thief after 1 hour.

But if she runs behind the thief at less than 30 Km speed hour, she will never catch him.

Similarly, If your investments give you higher returns, then you can beat 10 core wealth with just 10 lakh investment.

Let’s see how it can be done.

## One Lakh investment will beat One crore wealth…

Let’s understand it with different scenarios…

## ROI the same for you and for your neighbour…

Let’ assume that your one lakh investment and your neighbors 1 crore wealth has given a return of 6% for both of you in 100 years.

In addition, let’s assume that you and your neighbor invested in the same ratio in real estate and gold.

 Year 1 lakh in Million 1 crore in Million 0 0.1 10 1 0.106 10.6 2 0.11236 11.236 3 0.1191016 11.91016 4 0.126247696 12.6247696 5 0.133822558 13.3822558 6 0.141851911 14.1851911 7 0.150363026 15.0363026 8 0.159384807 15.9384807 9 0.168947896 16.8947896 10 0.17908477 17.908477 11 0.189829856 18.9829856 12 0.201219647 20.1219647 13 0.213292826 21.3292826 14 0.226090396 22.6090396 15 0.239655819 23.9655819 16 0.254035168 25.4035168 17 0.269277279 26.9277279 18 0.285433915 28.5433915 19 0.30255995 30.255995 20 0.320713547 32.0713547 21 0.33995636 33.995636 22 0.360353742 36.0353742 23 0.381974966 38.1974966 24 0.404893464 40.4893464 25 0.429187072 42.9187072 26 0.454938296 45.4938296 27 0.482234594 48.2234594 28 0.51116867 51.116867 29 0.54183879 54.183879 30 0.574349117 57.4349117 31 0.608810064 60.8810064 32 0.645338668 64.5338668 33 0.684058988 68.4058988 34 0.725102528 72.5102528 35 0.768608679 76.8608679 36 0.8147252 81.47252 37 0.863608712 86.3608712 38 0.915425235 91.5425235 39 0.970350749 97.0350749 40 1.028571794 102.857179 41 1.090286101 109.02861 42 1.155703267 115.570327 43 1.225045463 122.504546 44 1.298548191 129.854819 45 1.376461083 137.646108 46 1.459048748 145.904875 47 1.546591673 154.659167 48 1.639387173 163.938717 49 1.737750403 173.77504 50 1.842015427 184.201543 51 1.952536353 195.253635 52 2.069688534 206.968853 53 2.193869846 219.386985 54 2.325502037 232.550204 55 2.465032159 246.503216 56 2.612934089 261.293409 57 2.769710134 276.971013 58 2.935892742 293.589274 59 3.112046307 311.204631 60 3.298769085 329.876909 61 3.49669523 349.669523 62 3.706496944 370.649694 63 3.928886761 392.888676 64 4.164619967 416.461997 65 4.414497165 441.449716 66 4.679366994 467.936699 67 4.960129014 496.012901 68 5.257736755 525.773675 69 5.57320096 557.320096 70 5.907593018 590.759302 71 6.262048599 626.20486 72 6.637771515 663.777151 73 7.036037806 703.603781 74 7.458200074 745.820007 75 7.905692079 790.569208 76 8.380033603 838.00336 77 8.88283562 888.283562 78 9.415805757 941.580576 79 9.980754102 998.07541 80 10.57959935 1057.95993 81 11.21437531 1121.43753 82 11.88723783 1188.72378 83 12.6004721 1260.04721 84 13.35650042 1335.65004 85 14.15789045 1415.78904 86 15.00736388 1500.73639 87 15.90780571 1590.78057 88 16.86227405 1686.22741 89 17.87401049 1787.40105 90 18.94645112 1894.64511 91 20.08323819 2008.32382 92 21.28823248 2128.82325 93 22.56552643 2256.55264 94 23.91945802 2391.9458 95 25.3546255 2535.46255 96 26.87590303 2687.5903 97 28.48845721 2848.84572 98 30.19776464 3019.77646 99 32.00963052 3200.96305 100 33.93020835 3393.02084

If you see the above table, 1 lakh (0.1 million ) investment has become only 33 million in 100 years.

While at the same one crore ( 100 million ) wealth has grown up to 3,393 million.

You can see in the chart that 1 lakh investment is flat in 100 years and one crore wealth has grown significantly.

So, it is very clear that we can not beat one crore wealth with 1 lakh investment if invested in a mix of asset classes where both will get a 6% return on investment (ROI).

## When 1 lakh investment will beat one crore wealth?…

Here, Let’s assume that your neighbor invested the same real estate and gold as said above case and got an ROI of 6% only.

while at the same let’s assume that you have invested in a mix of assets real estate, gold, and equity ( mutual funds, etc) and got more return than your neighbor.

In this case, you will definitely get more wealth than in the first case. ( more than 33 million).

If you see the above table, one core has grown just the same as in scenario 1) as we have assumed 6% ROI like in the first scenario.

But 1 lakh investment has grown up to 552 million unlike 33 million in the first scenario.

As we got a 9% ROI in this scenario.

In addition, you can see in the chart, the 1 lakh investment is not flat like in the first scenario chart.

## At what ROI both 1 lakh investment and one crore wealth be equal in 100 years?…

If you see the above table, you can see both 1 lakh investment and one crore wealth has given the same wealth in 100 years.

But this will happen only if your  1 lakh investment gives you an average ROI of 11% in 100 years.

and your neighbors one crore wealth grows at ROI of 6%,

In addition, You can see both the grey line and yellow line in the above chart met at the same point means both the investments have given the same wealth.

But you may have got a doubt that how to get 11% ROI in your investment i.e 5% extra than your neighbor?

Yes, a 5% extra return is possible if you invest in the equity market along with gold and real estate.

Every Investment will not give you a constant ROI every year.

The return can be low, high, zero, and negative also

Read this article about low return and zero return scenarios, How your overall return will be compromised.

So, if you invest in gold, real estate, and equity-based on your risk tolerance.

In case one asset is giving a negative return, the other two assets may give some positive return.

and if you re-balance the portfolio again and again periodically,  In a long period, you will end up accumulating more wealth than investing in only in fewer assets like gold and real estate.

If that happens, As I said in this article, Your 1 lakh investment also can beat your neighbors one crore wealth after some time.

### How much money you should invest today to beat one wealth in 35 years with ROI?…

Some of you may argue that we will not live for 100 years and my age is 25 years, and I would like to beat my neighbours wealth of 1 crore in 35 years.( at your retirement).

In addition, You may say that you are ready to invest more than 1 lakh.

Let’s check that scenario also with the below images.

If you see the above table image, If you can invest 19.95 lakh at 11% for 35 years, Your investment will be able to beat 1 crore wealth.

In addition, you can see in the chart that the yellow line crosses the grey line and ended much higher than the grey line.

and the wealth created also is very huge than your neighbor if you invest 19.95 lakh today at ROI 11% for 100 years.

#### Conclusion…

I do not know that you really get a 5% extra return if you invest in the equity market along with real estate and gold.

One thing I know is investing in a multi-asset portfolio will increase your overall portfolio return.

In addition, equity is also capable of giving more inflation-adjusted returns like real estate.

So, neglecting equity and not investing enough both are bad ideas.

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