How to get rich: Turn Rs 11,250 into Rs 10 lakh; this is where you should invest
Getting rich fast in days and months are of course, what fools chase to their eternal regret. So, we will speak in favour of years.
Getting rich is not easy, especially if you want to do it fast, but it is a dream that everyone has. Though there are no shortcuts to get hefty amounts of money, you can for sure build a great corpus over time by investing a particular fixed amount per month. However, it all depends on how long you want to remain invested. In short, the longer, the better. At the end, you will emerge rich, much more than what you may have expected.
Getting rich fast in days and months are of course, what fools chase to their eternal regret. So, we will speak in favour of years. Even if you have a five-year investment plan, you can build a corpus of Rs 10 lakh and that too after looking out for your risk profile and appetite.
So, if you want a low-risk investment, then you should invest in hybrid debt-oriented funds.
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"If one has a 5-year time horizon with a low risk theme, hybrid debt-oriented funds will be best and one can put in Rs 13,000 per month over 5 years at the rate of 10% rate of interest per annum, you can amass a Rs 10 lakh corpus," said Tarun Vohra, CEO, Integra P.R.O.F.I.T.
Vohara said if someone wants to take some extra risky (moderate risk only) investment, then he or she needs to invest Rs 12,500 per month to get Rs 10 lakh in five years.
"If one has a 5-year time horizon with a moderate risk, then balanced advantage funds will be best and one can put in Rs 12,500 per month over 5 years at the rate of 12% per annum to amass a Rs10 lakh corpus," he said.
However, those willing to take a higher risk, this will still not mean betting on a chimera, can accumulate Rs 10 lakh by investing Rs 11,250 per month.
"Those with an aggressive risk appetite can invest in large cap+mid cap+small cap funds. One can put in Rs 11,250 per month at the rate of 15% per annum over 5 years to accumulate a Rs 10 lakh corpus," said Vohra.
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However, investors might get cautious of investing in mutual funds amid market volatility. They may wonder whether is it a good time to invest in MFs?
However, Vohra said that one can invest via SIP investment methodology. This method takes the volatility out of the equation as you go through the years merrily on your profitable way.