In India, the dream of becoming a crorepati by the age of 40 is increasingly common, especially among young professionals in metros. With rising salaries in IT, finance, consulting, and startups, it's no longer just a fantasy. But is it realistic for most people?
Yes, it is certainly possible, but it requires excellent discipline and judgement. You can choose to invest in instruments such as mutual funds, gold and PPF to increase your wealth over time.
Let us assume you start at the age of 25 and make investments in PPF and mutual fund SIPs over 15 years.
Investing In Mutual Fund SIPs:
Monthly investment needed: Rs 15,000
Tenure: 15 years
Total investment: Rs 27 lakh
Expected returns: 12%
Estimated returns: Rs 44.39 lakh
Maturity corpus: Rs 71.39 lakh
Investing In PPF:
Monthly investment needed: Rs 12,000
Tenure: 15 years
Total investment: Rs 21.6 lakh
Expected returns: 7.1%
Estimated returns: Rs 16.27 lakh
Maturity corpus: Rs 37.87 lakh
Becoming a crorepati before 40 is realistic in India with disciplined, consistent savings, starting early, and investing in growth assets like mutual funds. Timing, discipline, and increasing contributions over time are vital components of success.
If you're starting late or earn an average salary, you can aim for Rs 1 crore by 45–50 instead, as it is far more achievable. You can budget wisely to free up a suitable proportion of your monthly income for investments.
You can start early to exploit the power of compounding fully. Avoid impulsive withdrawals or lifestyle inflation that eats into savings. Maintain a diversified portfolio to manage risk.
In the Indian context, equity mutual funds offer a more disciplined and diversified approach compared to direct equity investments. They provide a balance of risk and return, with the advantage of professional management. Direct equity investments can offer higher returns but come with greater risk and require more active management.
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