- Invest Rs 40,000 monthly in mutual funds and gold to build Rs 10 crore in 30 years
- Mutual funds with 12% returns can grow Rs 20,000 monthly to Rs 6.16 crore in 30 years
- Gold investment of Rs 20,000 monthly can grow to Rs 4.16 crore in 30 years
Building wealth is a steady journey and it requires long-term financial commitment. While your job can be your most important source of income, it is important to be aware of the various investment options available and learn how to grow one's wealth.
The foundation of wealth creation is not just working for money, but more importantly, making your money work for you as well. If you can set aside Rs 40,000 monthly and invest in schemes such as mutual funds, public provident fund (PPF) and assets like gold, you can grow your investment to Rs 10 crore over a long-term investment horizon.
The key to reaching this milestone lies in the magic of compounding, where your investments grow exponentially over time. By consistently investing Rs 40,000 per month and choosing the right investment instruments, you can harness this power.
Let's break it down:
Building Rs 10 Crore With Monthly Investment Of Rs 40,000
1. Investment In Mutual Fund
Monthly Investment: Rs 20,000
Investment Duration: 30 years
Total Amount Invested: Rs 72 lakh
Expected Returns: 12%
Interest Earned: Rs 5.44 crore
Maturity Corpus: Rs 6.16 crore
2. Investment In Gold
Monthly Investment: Rs 20,000
Investment Duration: 30 years
Total Amount Invested: Rs 72 lakh
Interest Earned: Rs 3.44 crore
Maturity Corpus: Rs 4.16 crore
Thus, by investing Rs 40,000 monthly in assets like gold and mutual funds, you can build a corpus of Rs 10 crore over three decades. The time you give your investments to grow is critical. A longer horizon allows compounding to grow your wealth.
Further, you need to note that though a Rs 10-crore corpus sounds massive, inflation can erode its purchasing power. Also, consider your lifestyle goals, such as retirement, children's education, or buying a home, and adjust your savings accordingly.
Accumulating Rs 10 crore by setting aside Rs 40,000 every month is achievable with patience, discipline and smart investing. It is important to diversify your investments and stay focused on your long-term goal. You must also remember that investments in mutual funds are subject to market volatility. Past returns do not guarantee future results. Always consult a SEBI-registered financial advisor for personalised guidance.
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