How to become rich in India fast: A 22 year old can become a crorepati in just 10 years; this is how
How to become rich in India fast: This 22-year old Zee Business TV viewer wanted to know how to become a crorepati in 10 years; see what expert advised.
How to become rich in India fast: Well, who doesn't want to become a crorepati? But this desire burns most in the younger population and the go-getters. And with more active years at hand, they are definitely in a better position than others to make it big in life financially. For a middle class earner with no significant parental wealth, being a crorepati looks like a pipe dream, but this can very well become a reality. All they have to do is build a source of passive income with the help of an active one and then add to the gains by adding to the earnings through the magic of compounding.
So, what is a passive income and will it answer the question as to how to become rich in India fast:
This is the money that you make while sleeping, eating, doing all the routine stuff every passing day. Coming straight to the point, invest in equity market via systemic investment plan (SIP) as early as possible to embrace the power of compounding. A little amount invested periodically can go a long way to accumulate wealth in some years. Pay heed to what Warren Buffett says in the following quote, and simply get on with passive income:
If you don’t find a way to make money while you sleep, you will work until you die – Warren Buffet
Vivek Yadav, a 22-year old viewer of Zee Business understood this quite early in age and planned his finances in his early twenties. Yadav has some lumpsum investments in the following funds:
SBI Blue Chip Fund - Rs 5 lakh
SBI Focused Equity Fund - Rs 50,000
Motilal Oswal Most Focused Multicap 35 Fund - Rs 4000
Yadav also runs a monthly SIP of Rs 6000 in SBI Smallcap Fund, and Rs 4000 in SBI Midcap Fund.
He wishes to become a crorepati in 10 to 12 years.
WATCH THIS ZEE BUSINESS CROREPATI VIDEO
Here is what Shweta Jain, certified financial planner suggested to Yadav on Zee Business Mutual Fund show:
1) The current SIPs are not enough to accumulate Rs 1 crore in 10-12 years. At least Rs 32,000 per month investment will be required to collect inflation-adjusted Rs 1 crore during the said period.
2) The expert advised him to increase his time horizon along with investment amount to become a crorepati by late thirties.
3) The expert cautioned him against investing lumpsum in mutual funds. "Instead of shelling out lumpsum in equity funds, better to do that in liquid funds, and then moving money from liquid to equity via Systemic Transfer Plan (STP)," she advised.
Thus, being crorepati is not that difficult as it appears. All one needs is discipline and patience to enjoy rewards from the stock market.