How to become a millionaire in 5 years: Get Rs 15 lakh fast; just go ahead and do this

How to become a millionaire in 5 years: Earning a big amount to pay for certain big purchases is on the mind of every working person. This can be for a car, a small home or even a large downpayment on a big home purchase. This has been dubbed as goal-specific savings and it is one of the best strategies to adopt in India for the young guns aspiring to having all the comforts of life in as short a period possible.

However, It is not easy, trying to save big amounts from salaries and those willing to go for it must put the brakes on their spending habits and eschew expensive habits or even hobbies. However, the end result, when the goal is achieved, is sweet indeed.

To make it easy for investors, we have Pranjal Kamra, Founder, Finology explaining how people can get Rs 15 lakh in just 5 years - where to invest, what amount to invest at best interest available in markets. And considering these are tough times in India, hit by corona pandemic, risk is just above minimum.

Asset Allocation And Where to Invest

According to Pranjal, "For a medium-term investment goal (5 Years), you need to have a balanced portfolio consisting of an ideal mix of different asset classes that provides for steady growth without taking too much risk."

Pranjal explains where all to invest in a simple manner. He says, "The thumb rule for asset allocation for individuals with moderate risk profile could be to put 50%-60% in Equity, 30 -40% in fixed income instrument and up to 10% in gold bonds or gold ETFs."

For Equity allocation, Pranjal says investors can consider a well-diversified mutual fund investment like Parag Parikh Long Term Equity Fund. And in fixed income instruments, opttions are Fixed deposit or a safe bond fund.

How Much to Invest and Returns on Investment

After having invested the money, what kind of returns can investors expect? Pranjal says, "With this above investment strategy, you can expect an annual return of 11%. So as to reach your desired corpus of Rs 15 lakh in the said time frame, you need to invest approximately Rs 19000 per month for a tenure of 5 years."
Lumpsum Investment

Those who have some of the money, can get a quick start. Pranjal says, "If you want to invest via lumpsum investment mode, your initial corpus amount should be around Rs 5.29 lakh."

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