Turn your Rs 10,000 into massive Rs 2 crore! This is what you must do now

How to become a crorepati: The Indian stock market has proved to be the best performing asset class over the long-term. The Indian indices (Sensex, Nifty, Bank Nifty etc.), for instance, have given returns in excess of 16 per cent annually over the last 10 years. This means that if you had invested Rs 10,000 every month over the last 10 years you would have more than Rs 29 lakh by now. A more conservative estimate would assume that stocks give 10 per cent return every year. If you invested Rs 10,000 every month for the next 30 years, you would get an amount of more than Rs 2 crore!

Speaking on how does a long-term investor maximise his profit via equity investments, Harsh Jain, CO-Founder & COO at Groww said, "If you have a high-risk appetite, you can invest in shares and watch them grow over long-term say next 20-25 years. You can invest either a lump sum or a little bit every month thus optimising your cost. If you would like to lower your risk but still be in equities then you can try equity mutual funds. Monthly investments in equity schemes in the form of Systematic Investment Plans (SIPs) can help you build wealth over a long-term horizon."

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However, turning yourself into a crorepati is not that easy as there are many dangers involved. Jain said that diversification of an investor's portfolio is a must and fund allocation should be a mix of both debt and equity plans. Jain said that if an investor has a low-risk appetite, then he or she should invest in equity mutual funds because it maximises an investor's money through compounding benefits through interest on interest. However, an investor who is interested in equity funds but at the same time wants to save income tax outgo, he or she can choose the ELSS Mutual Funds option.

Elaborating upon the equity mutual fund investment strategy, Jitendra Solanki, a SEBI registered tax and investment expert said, "One who has high-risk appetite can invest in equity mutual funds keeping one's investment goals in mind. If he or she is looking for a long-term investment goal, then the small-cap mutual fund would be an ideal destination to park one's money. However, if the investor has a lower risk appetite but a long-term investment goal to achieve, he or she can invest in multi-cap mutual funds. For short-term investment goals, one should go for the debt mutual funds while for medium-term investment goals one can invest in mid-cap or large-cap mutual funds."