You can save Rs 10 crore by investing Rs 20 every day in this special savings account.
New Delhi: It is everyone’s ambition to get wealthy. Everyone wishes to have a bank account with crores of rupees in it. However, a middle-class man will find it difficult to add this amount. The reason for this is because there isn’t much savings due to restricted income and costs.
SIP investing in mutual funds can help you achieve your goal of becoming a millionaire. If you save merely Rs 20 every day for this, you can easily become a millionaire by the time you retire.
How long will you have to invest
With just Rs 20 per day, you can become a crorepati. You can save Rs 10 crore by investing Rs 20 every day in this special savings account. However, adequate investment planning is required for this. Let’s have a look at how you can become a millionaire by simply saving Rs 20 per day.
Mutual funds are well-known to the general public. Every month, an investing facility is provided. A Systematic Investment Plan allows you to invest a minimum of Rs 500 in mutual funds every month (SIP). You will have an easy time becoming a carpenter if you do this. In the last 25 years, mutual funds have provided phenomenal returns to investors.
If you start saving Rs 20 every day when you’re 20, you’ll have Rs 600 in a month. That is, make a monthly contribution of Rs 600 and invest it in mutual funds using a systematic investment plan (SIP). This investment must be maintained for the next 40 years. That is, you will have to invest Rs 600 every month for 40 years (480 months).
This investment will yield a 15 percent annual return. As a result, you would receive a total of Rs 1.88 crore after 40 years. You simply need to invest Rs 2,88,00 over the next 40 years. After that, assuming a 20% return on a monthly SIP of Rs 600, a total of Rs 10.21 crore will have been accumulated after 40 years.
What will be the fund on 12% return?
Read More:- Apple Closes in on $3-Trillion Market Value
Aside from that, at the age of 20, if you save Rs 30 every day, you will have Rs 900 every month. If you invest it in a diversified mutual fund through a systematic investment plan (SIP), you will receive Rs 1.07 crore after 40 years at a rate of only 12% annual return. During this time, a Rs 4,32,000 investment will be required.
In fact, compounding, i.e. compound interest, makes modest contributions look like large cash in the long run. Keep in mind, however, that before investing in mutual funds, you should get the advice of a market counsellor.
