Here is how you can invest in mutual funds to become a crorepati by simply saving as little as Rs 20 daily.
Everyone wants to save money and have crores in their bank account. However, it is not easy for a middle-class man due to limited income and expenses as there aren't much savings.
Today, we will tell you the idea of becoming a millionaire. Your dream of becoming a millionaire can be fulfilled by investing in mutual funds through SIP. For this, if you save only Rs 20 a day, then by the time of retirement you can easily become a millionaire.
In this, you can raise Rs 10 crore by investing Rs 20 every day. However, you will need proper investment planning. Read on to know how you can become a millionaire by simply saving as little as Rs 20 daily.
Everyone knows about Mutual Funds. You can invest a minimum of Rs 500 in mutual funds every month through a Systematic Investment Plan (SIP). In this, you will get a chance to become a crorepati easily. Mutual funds have given tremendous returns to the people in 25 years.
If you save Rs 20 every day from the age of 20, this amount will become Rs 600 a month. You have to continue this investment for 40 years. That is, for 480 months, you will have to invest Rs 600 every month.
Assuming that you will get 15% annual return on this investment, after 40 years, you will get a total of Rs 1.88 crore. During these 40 years, you have to invest only Rs 2,88,000. If you get a 20 percent return on a SIP of Rs 600 a month then after 40 years, a total of Rs 10.21 crore will be accumulated.
Apart from this, if you save Rs 30 every day at the age of 20, then it will become Rs 900 per month. If you invest it in any diversified mutual fund through SIP, then after 40 years on this investment, you will get Rs 1.07 crore at the rate of 12% return only annually. During this, an investment of Rs 4,32,000 will have to be made.
In fact, in long term investment, compounding i.e. compound interest makes small investments stand out as thick funds. However, keep one thing in mind that before investing in mutual funds, you must take the help of a market advisor once.