How to become crorepati by investing in Mutual Fund
Diwali 2018: Amidst rising cost of living these days, every one wants to earn as much money as possible to take care of the needs of her/his family
Diwali 2018: Amidst rising cost of living these days, every one wants to earn as much money as possible to take care of the needs of her/his family. One of the benchmark goals for a large number of the middle class citizens today is becoming a crorepati. Some try to become a crorepati fast, but unfortunately, often end up getting duped. However, there are some people who are patient and want to see their money grow to its full logical potential without putting their money under any threat or risk. Importantly, such people often reach their goal.
There are many financial instruments available in the market that can help you become a crorepati over a period of time. In fact, you can generate a lump sum of Rs 1 crore by simply investing Rs 20,000/month. And take the first step in this regard on the upcoming diwali.
You may be earning a salary of over Rs 1 lakh. But it is important to invest in the right financial product. You need to ask a few questions to yourself - Will your current investment be sufficient to meet your needs in future, especially after retirement? Will your fixed deposit or PPF investment help fulfil you future dreams? If we take the ever rising cost of living into account, you may find that the actual value of return on your investments after a certain period of time may be just 1-2% more than now.
Experts say that one can become a crorepati fast by investing just Rs 20,000 in mutual funds.
According to Jitendra Solanki, a SEBI-certified investment advisor at JS Financial Advisors, any person can become a crorepati by saving Rs 20,000 per month. If we consider a 13% return on the investment, a person will become a crorepati in just 15 years, Solanki told Zeebiz.com.
Solanki said that one can get best returns in the long term on Equity Mutual Fund. This option is capable of giving 13% annual return. You may be now wondering about the Mutual Fund to be picked to become a crorepati? Answering this, Solanki said all investors should follow the Core&Satelite investment strategy to get to the Rs 1 crore goal. He said, one should invest Rs 15,000 in large and multicap funds and Rs 5000 in mid/small equity funds.
Let's check the Mutual Funds that have given excellent returns in the last five years. This help you select the best equity funds to invest your hard earned money in:
*Source: Value Research
Core & Satellite Portfolio Management is basically an investment strategy incorporating traditional fixed-income and equity-based securities (also known as the 'core' of the portfolio).