Do you keep thinking of means to become a crorepati? What if we say that we can help you become one? And no, you don’t have to sell your body part for that. All you need to do is invest in equity funds via SIP (systematic investment plan) over a substantial period. To save Rs 1 crore, or even more, one needs to save regularly and use equity asset class to their benefit to achieve your long-term investment goals. To ensure that you save regularly, you can start an SIP investment in your desired mutual fund scheme.
SIP is a method of invest in mutual funds to achieve long-term investment goals. Under this investment mode, a fixed amount is invested at fixed intervals over a significant period in desired mutual fund schemes. The periodicity of the intervals can be daily, weekly, monthly, or annually. You can invest as low as Rs100 in SIP mutual fund.
Can you become a crorepati in 10 years?
The journey of becoming a crorepati is indeed challenging, but not impossible. If you set your heart to it, you can quickly become a crorepati in 10 years.
Plan to help you become a crorepati in 10 years
Following are some crucial points to be considered while developing a financial plan to generate 1 crore from your mutual fund investments in 10 years.
Don’t shy from professional help – A financial planner can help you develop a sound financial plan that not only considers your future expectations but also meets your current expenditures.
Investing in mutual funds: Mutual funds are one of the highest return yielding investment options available to an investor. It would be best if you found the most suitable schemes that best compliments your financial portfolio.
Diversify your investments: Diversification helps to mitigate the risk involved and achieve higher returns on your investments. It also helps to reduce the impact of low returns that may occur from any type of investment. Asset allocation is one of the best and widely used ways to diversify your mutual fund investments.
Tax Saving Investments: Numerous tax-saving investment avenues allow you to claim a tax deduction of up to Rs1.5 lac u/s Section 80C from your total taxable income. Equity-Linked Savings Scheme (ELSS), National Pension Scheme (NPS), Public Provident Fund (PPF) are some of the investment options that provide stable returns with tax deduction features.
Through disciplined financial planning and investment acumen, one can easily and effortlessly become a crorepati in 10 years. However, keep a mental note that the value of money is likely to fall over time due to inflation. In simpler terms, Rs. 1 crore may seem an impressive amount now; However, in relative terms, the purchasing power parity of rupee could lessen. Hence, one should try to invest as much as possible to achieve their target as soon as possible. Investing in mutual funds for a prolonged period can help to grow income and quickly become a crorepati. Happy investing!