Do you often keep contemplating the amount needed to save in order to become a crorepati? There is no need for concern; achieving this goal is within your reach. Various strategies exist to accumulate one crore or even more over an extended period. Whether your target is accumulating a corpus of Rs 1 crore, Rs 2 crore, or more, consistent saving and leveraging the potential of equity investments are essential for long-term success.
To facilitate regular savings, initiating a systematic investment plan (SIP) is advisable, and investing in equity mutual funds can enhance your financial growth. By participating in SIPs within equity funds, you can effectively work towards saving Rs 1 crore over time.
To determine the investment required for an SIP, with an expected return of 12 percent from equities, an individual can accumulate Rs 1 crore by investing approximately Rs 5,500 monthly over a period of 25 years. Alternatively, to reach the same goal in 30 years, a monthly investment of Rs 2,900 would suffice. For those unable to save a larger sum in the early years, it is still feasible to achieve the Rs 1 crore target.
Also Read SIP Calculator: How much Rs 5,000 monthly investment will grow in 20 years? Rs 10000, 20000, 30000 SIP a month: How long will it take to make Rs 1 crore in mutual funds? NPS Vatsalya Calculator: How Rs 1,000 monthly investment can secure a Rs 3 lakh pension for your child Retire Rich: Is it possible to get a Rs 1 cr monthly pension in India?
Also Read: SIP Calculator: How much Rs 5,000 monthly investment will grow in 20 years?
Conversely, if one can invest Rs 5,500 monthly but desires to reach Rs 1 crore in a shorter timeframe, this is also attainable through a straightforward approach. This method involves incrementally increasing the monthly SIP contribution by a specific percentage. One could commence with a lower initial investment and subsequently raise the SIP amount at regular intervals.
In the aforementioned scenario, starting with a monthly SIP of Rs 4,300 and increasing it by 3 percent each month would ultimately yield a corpus of approximately Rs 1 crore. As illustrated, saving Rs 1 crore by investing Rs 5,500 monthly at an assumed annual growth rate of 12 percent requires 25 years.
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