Mutual Fund Investment: Want Rs 1 crore, Rs 50 lakh, Rs 10 lakh, or Rs 5 lakh in 10 years? You may need these amounts

How to become crorepati by investing in Mutual Fund:  Creating wealth with Mutual Funds requires proper planning and approach. You may achieve many of your financial goals by investing whatever little amount you manage to save from time to time. Mutual Funds provide one of the easiest ways of creating wealth, though fraught with certain risks. Mutual Fund is basically a financial product that pools money from different individuals and invests it on their behalf into numerous assets like equity, debt, or gold. There are several mutual fund schemes available to chose from. They give investors the flexibility to invest in various asset classes. According to investopedia, an asset class is basically a group of securities that show similar characteristics, behaves similarly in the marketplace, and is subject to the same laws and regulations. There are three main asset classes: a) Equities, or stocks; b) Fixed income, or bonds; c) Cash equivalents, or money market instruments.M

Mutual Funds also give freedom to investors to not invest on a continuous basis. It provides an option to stop investment in case there is no cash flow. Hence, the invested amount can grow until you decide to liquidate it. 

Mutual funds come loaded with several benefits, including freedom from tracking the stock market on a daily basis as one does for money invested in stocks. Also, you can start investing in Mutual Funds even when you are not a financial expert as they are managed by professionals. It is said that Mutual Funds give best returns in the long run. 

You may be wondering as to how much it may take to generate a wealth of, say, Rs 1 crore, Rs 50 lakh, Rs 10 lakh or Rs 5 lakh in a time span of 10 years. There are several online mutual fund calculators made available by different funds. All of them help give an idea of the amount one may need to invest to reach a certain goal. Here we take a look at what the SBI Mutual Fund calculator suggests at an average annual rate of return of 12%:

Rs 1 crore

The SBI Mutual Fund calculator shows you may need to invest Rs 43,041 per month to get Rs 1 crore in 10 years. If you want to achieve this target in 20 years, then you may need to invest just Rs 10,009 per month, the calculator shows. 

Rs 50 lakh

The SBI Mutual Fund calculator shows you may need to invest Rs 21,520 per month to get Rs 50 lakh in 10 years. 

Rs 10 lakh

For this amount, the SBI Mutual Fund calculator shows you may need to invest just Rs 4304 per month in 10 years. 

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Rs 5 lakh

You need to invest just Rs 2152 per month in 10 years to get Rs 5 lakh, the calculators. 

With the above, you can see that even a small monthly savings of Rs 2150 (or approx Rs 71.4 per day), can help you accumulate up to Rs 5 lakh in 10 years. 

Thanks to the power of compounding, the calculator shows, you can generate up to Rs 10 lakh by investing just Rs 1001 (or approx Rs 33 per day) in 20 years. To get this amount in 5 years, you may need to invest Rs 6062 per month, shows the calculator. Though Rs 5 lakh may seem a small amount, it can help you meet several financial goals like making the initial deposit for buying a house, or a dream car, or paying for emergency medical requirements.