Get Rs 50 lakh in 10 years, this is what you need to do

You must have heard that there is no shortcut for anyone to become rich. Everyone wants to be rich and wealthy. However, a critical need is to have a wisely selected investment plan. Amid the volatile stock markets, most of the investors are worried about their investment. Many have burned their fingers. People are looking for investment options that not only give a better return, but also help fulfill their long-term goals. The desire to get rich quick is very much there, but it can be powered only if proper investment strategy is implemented. Under your active consideration must also be investment options, which may help you to save taxes. You can definitely choose from those options which include Mutual Funds and life insurance too.

So, you must choose an option which gives you a good return as well as make you go through less volatility and at the end leaves you much richer, literally! And yes, some of these investment options may help you accumulate as much as Rs 50 lakh and that too over a period of just 10 years provided you keep the investment flow regular.

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So, if you are targetting a big ticket buy in a decade from now, it can be a home or even spending on daughter's wedding or kids' education, and you think you would need about Rs 50 lakh, then here is what you must start saving.  
 
"Assuming CAGR of 12 per cent, an investor should invest around Rs 22,000 per month to accumulate Rs 50 Lakh in 10 years," said Pankaj Mathpal, Managing Director, Optima Money Managers Pvt Ltd.

And what will provide that kind of return on investment? Mathpal says that one should carefully choose and invest in a diversified portfolio of Mutual funds to get a return of this kind.

"Considering time horizon of 10 years, I suggest an investor should consider investing in a diversified portfolio of Mutual funds through SIP route," added Mathpal.

Investment advisors have been giving preference to Mutual Fund SIPs over fixed deposits and other investment options for long-term investments. Mutual Fund SIPs have a potential to yield better returns than FDs in the long term due to their composition that spans a number of options including equity.