Here’s What It Takes To Create Rs.3 Crores With Just 10 Years Of ULIP Investment


Investing in your future is a vital step towards financial security. And when it comes to securing your future while aiming for substantial returns, Unit Linked Insurance Plans (ULIPs) are a promising option. If you’re considering an investment for the long term, especially in a diverse and lucrative plan like ULIP, the potential gains can be remarkable. Imagine creating a corpus of ₹ 3 crores within 10 years through these investments. In this blog, we will explain what a ULIP is and discuss the key elements that can help you accumulate this corpus efficiently and successfully.

What Is a ULIP Investment?

Before exploring the elements to create ₹ 3 crores in 10 years, it is first important to know the answer to the question ‘What is ULIP?‘ ULIPs are an investment cum insurance product that offers the dual benefit of investment and protection. When you invest in a ULIP, a portion of your premium goes towards providing life insurance coverage, and the remaining amount is invested in various funds, such as equity, debt, or a mix of both. The performance of these funds influences the growth of your investment.

Key Factors Contributing to the Potential Returns of ULIP Investments

Here’s a breakdown of the significant components of ULIP Investments that contribute to their potential to yield substantial returns:

  • Flexibility in Investment: ULIPs allow you to switch between funds based on your risk appetite and market conditions. This flexibility enables you to optimize your investments for better returns.
  • Lock-in Period: Typically, ULIPs have a lock-in period of five years, which instills a sense of discipline in long-term investing. The longer duration often results in enhanced returns due to the power of compounding.
  • Transparency and Charges: ULIPs have transparent structures where all charges are disclosed. Understanding these charges is crucial to making informed investment decisions.
  • Tax Benefits: One of the significant advantages of ULIPs is their tax benefits. The premiums paid and the maturity amount received are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Factors Influencing ₹ 3 crores in 10 Years

Achieving a corpus of ₹ 3 crores in a decade with ULIPs is feasible but depends on various factors, including:

  • Investment Amount: The premium you invest significantly impacts the maturity amount. Higher investments have increased chances to yield better returns.
  • Choice of Funds: Your selection of funds, whether equity, debt or a mix, determines the potential returns. Equity-based funds generally yield higher returns but involve higher risk.
  • Market Conditions: The performance of the market directly influences ULIP returns. Diversification in different funds can help minimize risks during market fluctuations.
  • Disciplined Investing: Regular premiums and staying invested for the long term are key. Consistency in premium payment is crucial to benefit from the power of compounding.

Strategies to Maximise ULIP Returns

To target ₹ 3 crores in 10 years, employing certain strategies can bolster your ULIP investments:

  • Regular Review and Rebalancing: Periodic review and rebalancing of your portfolio ensures it aligns with your financial goals and market conditions.
  • Risk Assessment: Assess your risk tolerance and choose funds accordingly. For higher returns, a balanced approach between equity and debt funds is often recommended.
  • Long-term Vision: Stay invested for the long haul. ULIPs are designed for long-term wealth creation. Avoid premature exits as they may hinder your goal achievement.
  • Additional Contributions: Consider increasing your investment amount periodically, if feasible. Even small increments can significantly impact the maturity amount.

Example Illustration

Let’s consider Roshan, a 30-year-old individual with aspirations of securing a corpus of ₹ 3 crores within a decade. To reach this significant financial milestone, he sets out to determine an annual premium that harmonizes with both his financial capacity and investment objective. Choosing a ULIP plan that reflects an average annual return of approximately 12%, considering potential market fluctuations and the performance of diverse funds during the investment duration, Roshan needs to commit to an annual premium of approximately Rs. 1,30,000 over 10 years to realize his goal.

Here’s a simple breakdown of the hypothetical scenario:

  • Investment Amount: ₹ 1,30,000 per month
  • Investment Period: 10 years
  • Average Annual Return: 12%
  • Potential Return after 10 years: ₹ 3 crores

Can You Invest a Lesser Amount?

The table below presents varying investment options for different tenures, providing an idea of the monthly investment amounts needed to reach the ₹ 3 crores mark based on different time horizons and probable returns.

Investment PeriodMonthly Investment
10 yearsRs. 1,30,000
15 yearsRs. 60,000
20 yearsRs. 30,000
25 yearsRs. 16,000

These figures are based on the assumption of an average annual return of 12%. It’s important to note that these calculations are hypothetical and for illustrative purposes. The actual values may vary based on the ULIP’s performance, market conditions, and other factors.

It’s important to note that the investment amount mentioned refers specifically to the premium invested in the investment component of the ULIP. The total premium will increase when accounting for the life insurance component as well.


In conclusion, the journey to create ₹ 3 crores in just 10 years through ULIP investment demands discipline, informed decisions, and a long-term approach. The potential returns are enticing, but it’s crucial to align your investment strategy with your financial goals and risk appetite. Remember, while ₹ 3 crores is an achievable figure, the journey itself, with its financial security and wealth creation, is equally rewarding.

Remember, ULIPs offer a unique proposition of both wealth creation and insurance coverage, making them an attractive investment avenue for individuals looking to grow their money while ensuring financial protection for their loved ones.

Recommended Articles