A good way to invest consistently in a disciplined manner is through a Systematic Investment Plan (SIP). It not only helps you build a large lump sum over time, but it also allows you to start small and grow it gradually.
New Delhi: Every person wants to become a millionaire, but not everyone is able to fulfill this dream. To turn this dream into reality, one needs to invest money at the right place. Equity mutual funds are one such medium through which you can fulfill this dream.
But another question will come to your mind that for how long should you invest money to achieve this goal. You can invest your money anywhere, but you will not be able to become a millionaire in a day or two. After investing, you will have to review your investment in a disciplined manner.
Invest here
A good way to invest consistently in a disciplined manner is through Systematic Investment Plan (SIP). It not only helps you build a large lump sum over time, but it also allows you to start small and grow it gradually. If you start a SIP in mutual funds with Rs 1,000 every month or Rs 3,000 every quarter, you can invest Rs 2.2 lakh in the next 10 years. However, you should get 12 per cent interest on this investment.
How much to invest?
How much you should invest every month to become a crorepati depends on the return, time horizon and risk taking capacity. Return is simply the return you will get from equity mutual funds. The time horizon of your investment will be the time period in which you want to achieve your target while the risk reflects your investment capacity.
How much to invest for 10, 15 and 20 years
Suppose the mutual fund in which you have invested gives an annual interest of 12 percent. Based on this, we will calculate how much investment is required to get Rs 1 crore in 10 years, 15 years, 20 years. Remember that there is no guarantee of returns from mutual funds. Past returns are used only to calculate what you can expect. The less time you have to achieve the goal, the more you will have to invest.
- At the rate of interest of 12%, to get Rs 1 crore in 10 years, you will have to invest Rs 44,640 in SIP every month.
- To get Rs 1 crore in a period of 15 years, you will have to invest Rs 21,020 in SIP every month.
- Apart from this, to become a millionaire in 20 years, you will have to invest Rs 10,880 every month in Systematic Investment Plan (SIP).
- On the other hand, to get Rs 1 crore in 25 years, you need to invest Rs 5,880 every month.
