People say that it is not possible to become Crorepati from your regular income but if you plan your investment correctly you can even become crorepati from your salary.
All you need to consider is three main aspects:-
- Amount of your investments
- Rate of return
- Time Frame
You need to maintain discipline with your and investment to get this big return. You must be wondering that what amount you need to invest in order to become crorepati. Well this depends on return provided by investment class you have selected.
Amount of your investments:-
Following table can be used as a ready reckoner to achieve approximate target of 1 Crore , for different time period and different returns assumed. This table can help you in deciding monthly saving/investment required at every month to reach at goal of 1 Cr.
Investment required per month to become Crorepati | |||||
Time Frame (Years) | Time frame (Months) | 6% | 10% | 15% | 18% |
25 | 300 | 14,425/- | 7,600/- | 3,152/- | 1,808/- |
24 | 288 | 15,589/- | 8,450/- | 3,666/- | 2,161/- |
23 | 276 | 16,871/- | 9,426/- | 4,268/- | 2,585/- |
22 | 264 | 18,300/- | 10,531/- | 4,973/- | 3,092/- |
21 | 252 | 19,875/- | 11,781/- | 5,800/- | 3710/- |
20 | 240 | 21,620/- | 13,201/- | 6,771/- | 4,436/- |
19 | 228 | 23,570/- | 14,819/- | 7,915/- | 5,322/- |
18 | 216 | 25,770/- | 16,670/- | 9,265/- | 6,391/- |
17 | 204 | 28,253/- | 18,797/- | 10,870/- | 7,686/- |
16 | 192 | 31,075/- | 21,255/- | 12775/- | 9,260/- |
15 | 180 | 34,302/- | 24,110/- | 15,045/- | 11,179/- |
14 | 168 | 38,024/- | 27,451/- | 17,785/- | 13,531/- |
13 | 156 | 42,355/- | 31,392/- | 21,092/- | 16,430/- |
12 | 144 | 47,445/- | 36,086/- | 25,130/- | 20,028/- |
11 | 132 | 53,500/- | 41,739/- | 30,097/- | 24,533/- |
10 | 120 | 60,820/- | 49,640/- | 36,291/- | 30,238/- |
09 | 108 | 69,810/- | 58,258/- | 44,135/- | 37,560/- |
08 | 96 | 81,115/- | 69,180/- | 54,250/- | 47,131/- |
07 | 84 | 95,715/- | 83,387/- | 67,630/- | 59,940/- |
06 | 72 | 1,15,265/- | 1,02,534/- | 85,920/- | 77,628/- |
05 | 60 | 1,42,730/- | 1,29,582/- | 1,12,080/- | 1,03,160/- |
Rate of return:-
Rate of return determines how fast your money should grow. Higher the rate of return more money you will make after stipulated time. However higher returns comes with risk, hence you need to decide how much of risk you are willing to take. Low risk investment will provide less return.
According to expert you should distribute your investments in high-risk investments such as equity and mutual funds and low-risk investments such as bonds, gold and fixed deposits to get the best results. This way, even if one asset class suffers, the other will make up for the losses.
Time Frame:-
Investing for longer period means that your invested money will be reinvested which will add higher returns to your account. So starting early and stay invested for longer period will always help.
For 6% return you can invest in insurance. For 10% return you may select Fix Deposit as investment option. For higher return say 15-18% you can invest in stock market or equity based fund.
Start early and invest regularly and you can be Crorepati.
