A bank balance of Rs1 crore is indeed a tempting offer. To enjoy a satisfied and relaxed life, one ought to have a financially secured future. And to be truly financially independent, one must implement a well-defined financial strategy and ensure that they regularly exercise it. This process entails saving extra, making educated investment decisions, and also cutting down on unnecessary expenses. Investors often wonder if they can make Rs 1 crore by investing Rs 10,000 each month. Well, to their surprise, they can. This article will help act as an investment guide for the same.
How to make Rs 1 crore?
You can easily make Rs 1 crore by investing in mutual funds. Mutual fund investments have great potential to deliver inflation-beating returns when invested for a long duration. With different types of mutual funds readily available at your disposable, understand the ones that complement your investment portfolio. Once you have shortlisted the mutual funds, set aside an investment amount to invest in them. You can also invest in mutual funds via a systematic approach or Systematic Investment Plan (SIP). SIP is an investment tool and not an investment product in itself. Under SIP investments, regular investments are made towards mutual fund schemes for a stipulated period of time. This ensures that regular investments are made and thus instills financial discipline among investors. You can use an SIP calculator to understand the number of years required to achieve Rs 1 crore if you invest Rs 10,000 every month.
Assuming a 15% average return on your equity mutual funds, an SIP calculator will denote that you’d need around 18.19 years to achieve the much-awaited Rs 1 crore sum. Note that, if you increase your investment amount, you’d achieve the amount much sooner. For instance, if you invest Rs 15,000 each month, you’d attain the corpus in just 15.5 years. And, if you choose to invest Rs 20,000 each month, you would have achieved the corpus in less than 14 years. Depending on when you want the 1 cr amount, you can change your investment amount accordingly.
It might also be possible that you are not in the position to invest Rs 10,000 each month currently due to a lack of funds or other important liabilities. Fret not, you might consider stepping-up SIPs where you can increase your SIP investment amounts each year by a particular percentage or amount. This is perfect for investors who are confident of their income growing annually.
Through patience and discipline, you can easily become a crorepati in 15 to 20 years. However, do note that the value of money tends to fall over time owing to inflation. In simpler terms, Rs. 1 crore might appear a significant amount currently, but in relative terms, the purchasing power parity could and would lessen. Hence, you should try to invest in mutual funds as much as possible to achieve your target amount soon. Investing in mutual funds for a prolonged period will aid you to grow your money and become a crorepati. However, invest in mutual funds after carefully analysing your financial objective, investment horizon, and risk appetite. Happy investing!
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