Become crorepati even with a monthly salary of Rs 25,000! Check details

A lot of budding investors have an ambition of creating a wealth corpus of Rs 1 crore. Many of them have just started their career and hence their monthly earnings are limited. Some of these investors quote Rs 1 crore number more in zest without truly believing in it. They think of it as an unachievable number with their small monthly salary. 

According to Gaurav Goel, an entrepreneur and SEBI registered investment advisor, to achieve the goal of Rs 1 crore with a monthly salary of Rs 25, 000 one would need dedication and devotion.  

How can this goal be achieved?

Instruments of Investments: The best way to achieve this target is to deploy surplus savings in a basket of 5 equity mutual fund schemes using systematic investment plans. These mutual fund schemes can be selected by doing some basic research. 

Details

- Asset Class: Equity 

- Asset Type: Mutual Funds

- Plan: Systematic Investment Plans (SIP)- Growth Options- Direct Plans

- Number of Schemes: 5 (Diversified. Different strategies and different Asset Management Companies to mitigate risks)

- Time Frame: Long (As given in the table)

- Risk: High (There is always an inherent risk in equity investments and should be kept in mind before undertaking any investment)

The last column of the table below shows the number of years it would take to achieve a target of Rs 1 crore under different hypothetical monthly savings scenarios. A base case of 15 per cent monthly savings has been taken and stretched up to 35 per cent on the upper side as individuals are different. Some spend more on their lifestyle needs and others save more. A compounded annual growth rate (CAGR) of 12 per cent has been assumed by conservative estimates. It is important to note that the CAGR of Sensex in the last 45 years has been around 15.5 per cent. India is expected to grow at a nominal rate of around 12 per cent over the next few years. Hence CAGR of 12 per cent has been assumed.