Building a corpus of Rs 1 crore is a dream for many people in India. The ambitious goal of becoming a crorepati may seem overwhelming, but it can be easily achieved with discipline and a well-planned investment strategy. Reaching your first Rs 1 crore target is a remarkable milestone and it ensures financial security. Even by investing small amounts regularly, you can achieve this goal easily. Irrespective of the investment instruments, consistency and long-term planning could be crucial for your crorepati goal.
By investing regularly and allowing compounding to do its work, your wealth can gradually build into a significant amount. Diversification of your investments across different assets, such as gold and mutual funds, could be helpful to achieve your goal conveniently.
Further, you can invest small amounts in mutual funds via Systematic Investment Plans (SIPs) as well as opt for a lump sum investment.
Here's a breakdown of how you can make investments to achieve a target of Rs 1 crore in eight years.
Investing In Gold
Monthly investment needed: Rs 25,000
Expected returns: 10% per annum
Total investment: Rs 24 lakh
Estimated returns: Rs 12.14 lakh
Maturity corpus: Rs 36.14 lakh
Investing In Mutual Fund SIPs
Monthly investment needed: Rs 30,000
Expected returns: 12%
Total investment: Rs 28.8 lakh
Estimated returns: Rs 18.31 lakh
Maturity corpus: Rs 47.11 lakh
Investing In Mutual Fund Lump Sum
Total investment: Rs 9 lakh
Expected returns: 12%
Estimated returns: Rs 13.28 lakh
Maturity corpus: Rs 22.28 lakh
The calculations above illustrate how it is possible to achieve a corpus of Rs 1 crore in eight years by making regular investments in various assets. It is important to note that investments in mutual funds and gold are subject to market risks. The actual rate of returns can vary due to multiple factors. It's also important to note that the returns on mutual fund and gold investments will attract capital gains tax.
The Rs 1 crore goal can also be achieved with an investment of lower amounts every month. However, in this case, you may need to expand the tenure beyond eight years.
Before choosing a mutual fund, take time to assess how much risk you're comfortable with and review the specific terms of each option. An online SIP calculator can help you map out your investment strategy effectively.
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