Crorepati! Turn Rs 600 into Rs 1 cr for your children within this time-frame
Are you doing the financial planning for your child's education or even for setting them up for life by providing financial security? Are you willing to have Rs 1 crore to sponsor your child's education?
Are you doing the financial planning for your child's education or even for setting them up for life by providing financial security? Are you willing to have Rs 1 crore to sponsor your child's education? While it is a big task to arrange such a huge amount for the middle class, but surprisingly one can do this by just investing Rs 600 monthly. We all know that this amount would require long term savings and smart investing.
But the question is where to invest? Well, in order to fulfill your dream to get Rs 1 crore in funds, you could invest amounts like Rs 10,000 to Rs 15,000 in banks, post offices and mutual funds. However, to do this by investing just Rs 600 p.m. is also possible! Yes, you read that right! What you need to do is go for a SIP.
Market expert and CA, Manish Kumar told Zee Business Online that it is possible to accumulate Rs 1 crore by investing in banks or post office schemes and even though the interest rates on these schemes are way less. The average interest rate of these schemes stays around 6%, that may take long to collect such huge amount.''
Post office scheme may take 27 years
According to Manish, you can succeed in your plan by opening a recurring deposit (RD) in the post office. At present, the RD is getting 7.1 per cent interest. Check out this simple equation below:
> 10 thousand rupees to invest
> Post Office in RD
> 7.1 percent is getting interest
> 27 years to invest
> 1 crore rupee fund will be created
Mutual fund SIP
Manish added, ''You can also make a fund of Rs 1 crore, through a mutual fund (MF) SIP. For this, you need to start a SIP of Rs 600 every month, which can get you a sum of Rs 1 crore in 26 years. There are many MF SIPs in the market where people are getting 20 to 22 per cent annual returns. If the trend in market stays positive then a fund of Rs 50 lakh can be collected in 23 years and a fund of Rs 1 crore is achievable in 26 years.''
So, go figure! Power up your crorepati dreams for your kids.