How to become a Crorepati! Just set aside Rs 333pd to become wealthy; know in how many years
If you want to be a crorepati in 20 years, an investment of Rs 10,000 per month in equity mutual funds through SIP is enough, says expert.
How to become a Crorepati! Though Coronavirus pandemic has affected financial status of people, but in last few months, financial market has shown great recovery and now has started giving good returns again. So far, many portfolios were in red, however, market experts are calling it the right time to invest in the market as greenshoots of recovery are being seen and the early birds are likely to benefit the most. A double-digit growth is expected from here, but the question is how to get started and where to invest.
Big role of mutual funds
Market experts believe that mutual funds play significant role in increasing investors’ wealth. Mutual funds also gives good return in long-term. Mutual Funds’ Systematic Investment Plan or SIP is a good investment strategy. You can invest a fixed amount every month in mutual funds through SIP and can get a good return on your investment.
Keep Increasing your investment column
Market expert and director of BPN FINCAP Consultants, A.K Nigam, says if somebody wants to become a millionaire in short time then regular investment is not enough. He says that one has to make sure that as one's income increases over the years, one must increase investment amounts too. Do not splurge mindlessly and unnecessarily and make smart financial planning with a long-term objective.
According to AK Nigam, it is important to keep increasing investment amount if one wants to be a wealthy person in long-term. Nigam suggests that one needs to design his/her investment portfolio accordingly on their own or with the help of a financial planner to achieve their objective.
Rs 10,000 Investment is good enough
If you want to be a crorepati in 20 years, an investment of Rs 10,000 per month in equity mutual funds through SIP is enough. In other words, if you can save just Rs 333 a day, you are destined to be crorepati in 20 years. If you get even 13 per cent profit on your investment, you will be able to amass Rs 1,13,32,424 in 20 years. If you keep increasing your investment money over the time, then this target could be achieved easily and perhaps even exceeded.
AK Nigam says it is important that we build our portfolios keeping in mind diversification and select MF schemes accordingly. This will help us negate risk and ensure good returns. However, one should also consider his/her present financial status and capability and capacity to take risk. More risk can lead to greater returns, but then there is always danger there.
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So, continue to invest regularly, increase the amount that you invest over the years and pick your investment options carefully..
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