Investment Strategy: 7 Things You Should Not Do If Your Target Is To Make Rs 1 Crore

Building a corpus of Rs 1 crore is a dream for many investors, but it’s not as far-fetched as it may seem. What often stands between you and the crorepati goal isn’t lack of money to invest, but some preventable financial mistakes.

Here are seven such mistakes that you can avoid and ensure you build a corpus of Rs 1 crore seamlessly:

1) Don’t Start Late

Time is on your side when it comes to compounding. The sooner you begin, the lesser amount you’ll have to invest each month. Waiting for the so-called right time or a higher salary just delays your financial plans. Consistent investments over a longer duration help you build a corpus of Rs 1 crore easily due to the power of compounding.

2) Don’t Ignore Goal-Oriented Investing

Investing blindly is running a race without knowing the destination. Select a time frame for your target of Rs 1 crore. For instance, at least 15 or 20 years. Then select investment vehicles that align with your investment horizon.

3) Do Not Chase Quick Returns

Markets are appealing when bull runs are on, but short-term profits usually come with risks. Don't chase the latest “hot stock” or crypto trend. Hold on to strong and diversified positions that compound steadily with time.

4) Don’t Overlook Portfolio Review

Investing is not a “set it and forget it” affair. Review your portfolio periodically to rebalance, track performance and ensure your risk profile continues to be aligned with your goals.

5) Don’t Panic Sell When The Market Dips

Volatility never disappears. Selling in fear during downturns only locks in losses. Remember, investors who stay invested through market cycles are better positioned to gain in the long term compared to others.

6) Don’t Underestimate Inflation And Taxes

That Rs 1-crore goal may not mean the same 20 years from now. Never make a plan without accounting for inflation and post-tax returns. That 10% return may look great on paper, but considering inflation and taxes, the net return could be much lower.

7) Don’t Ignore Financial Discipline

Even the best of plans can fail without consistency. Automate your investments, track expenses and resist lifestyle inflation. Building wealth is less about luck and more about discipline over decades.

To conclude, reaching Rs 1 crore isn’t just about timing the market. It is also about consistency, avoiding these pitfalls and letting time and discipline do the heavy lifting.