Having one crore rupees or becoming a crorepati is a financial milestone many want to reach. It might seem unachievable, but it is feasible with the appropriate plan and careful money management. A mutual fund is one of the most dependable and secure methods for building money using systematic investment plans (SIPs).
You can become a crorepati by regularly investing over time, using compounding, and making wise decisions. We’ll look at the techniques and tactics you can use in this article to change your financial situation and get the coveted crorepati title through SIP investments.
How can SIP Help in Becoming a Crorepati?
Mutual funds are the best option for additional wealth in the long run. Everyone interested in becoming a crorepati by working smart instead of hard should invest in a Mutual fund’s SIP plan. However, how long it will take to achieve this goal is still a top issue.
According to MFI data, someone who invests Rs. 10,000 can become a crorepati in 20 years. However, the number can change if the SIP amount increases; you can use the SIP calculator app to determine your returns. Let’s give you some more ideas around the same.
With an investment of Rs. 10,000, becoming a crorepati will take 20 years; Rs. 20,000, Rs. 25,000, and Rs. 30,000 will do it in 15, 13, and fewer than 12 years, respectively.
All these are monthly investments that an individual needs to go for. If you are looking for even less time, the SIP calculator app is your friend to rely on. You must save and invest about Rs. 40,000 each month to become a crorepati in less than ten years. Similarly, Rs. 50,000 will take nine years, Rs. 75,000 will take seven years and investing Rs. 1 lakh a month will make you a crorepati in just five years and ten months.
How to Invest in SIP?
The most significant advantage SIP offers is the flexibility of your investment amount. No one needs to start as high as Rs. 1 lakh a month to become a crorepati in less than six years. You can become a crorepati even with a monthly investment of Rs. 5,000.
Start with Rs. 5,000 per month for a year if you wish to start small, but increase your SIP allocation by at least 10% annually. First-year, you begin with Rs. 5000 a month and increase that amount to Rs. 5500 next year and Rs. 6050 in the third year. Continue this trend and keep increasing the SIP amount by a minimum of 10% yearly, although the more the merrier.
Now, you can do the calculations using the SIP calculator app. You can understand that if you start with Rs. 5,000 a month, you will invest Rs. 12 lakhs with an assured 12% return (assuming) you will have a corpus amount of Rs. 50 lakhs. However, if you increase it by 10%, as discussed, you will invest Rs. 34.36, and the corpus amount after 20 years will be Rs. 1 crore.
Conclusion
In conclusion, achieving financial security with SIP investing is a well-planned and patient process rather than a quick-rich scheme. It necessitates self-control and a long-term perspective.
