Forget Kaun Banega Crorepati, you can earn your own Rs 10 crore this way

Apart from winning the Kaun Banega Crorepati hosted by Amitabh Bachchan, there are other ways also to become a crorepati, legally. However, there isn't any shortcut to that. Becoming a crorepati is a dream of many but achieved by only a few. To get your name into the crorepati club, you need to follow some investment ideas and systematic plans.

You can accumulate wealth as much as Rs 10 crore in the next 20 years, if you start investing now. This is when if the average rate of return is just 12 per cent.

"To accumulate Rs 10 crore in 20 years, one needs a monthly investment of at least Rs 1 lakh. It's assumed that this investment earns a 12% return annually after adjusting the tax to be paid on the gains. So, we are expecting a pre-tax return of 13-14%, since there is a 10% long-term capital gains tax on equity," said Jitendra Solanki, Founder, JS Financial Advisors.  

Solanki further said that these kinds of returns are only possible through equity investment.

"These kinds of returns can be achieved only through equities. One can invest in a mix of large-cap, multi-cap and mid-cap mutual funds scheme to accumulate the desired corpus. However, any investment is good if the asset allocation is done as per one's risk profile," he said.

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However, one might question if investing 100% in equity viable when other investment options like debt or gold don't generate high returns?

"Investing 100% in equity may not be viable which means you need to cut down on the return expectation since other asset classes like debt or gold do not generate such high returns. If the returns are lowered then you will need a higher contribution. So, one has to match the target corpus with the returns one can generate on investments and see if it is achievable," said Solanki.

You also have to keep in mind the volatility of the stocks market while investing in the equity. It's always better to keep your funds diversified and balanced in order to avoid market shocks.