Who wants to be a crorepati? You? Well, then do this fast or forget about it

Becoming a crorepati is no more a dream for a middle class earning individual. Even if his or her risk appetite is low, an investor can become crorepati by investing in SIP mutual funds. According to the investment experts, a long-term SIP means an investment for more than 20 years would give a post-tax return of around 12 per cent. So, if a person does a long-term SIP for more than 15-20 years, he or she can expect a return of 12 per cent, which will be after paying all taxes. 

Speaking on the modes in which an investor can invest for longer period of time and get this whopping Rs 1 crore number in his or her bank account, Kartik Jhaveri, Manager — Wealth Management at Transcent Consultants said, "Mutual Funds SIP is a good option for those who can't afford to invest big amounts. SIP gives you the luxury to invest for a longer period of time and you can step up your investment amount as well. So, you can choose a number that you can easily invest without any disruption and if you wish to enhance, you can step up your investment amount annually as well." 

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Asked about the returns that a SIP investor can expect after investing for long means more than 20 years Jhaveri said that if a person does SIP for more than 20 years, he or she can expect to get at least 12 per cent post-tax returns. It can be even more by 1.5 per cent to 2 per cent, depending upon the market performance during the period of investment.

If an investor checks through mutual funds calculator or SIP calculator, an investment of Rs 5,270 per month for 25 years would fetch him or her Rs 1,00,00, 536. Means, if a person invests Rs 170 (Rs 5,270/31) he or she can become a crorepati after investing in SIP for 25 years. This is possible without any annual step-up rate. So, for those who can manage to invest Rs 5,270 per month now should think of doing this because, after two-three years their income is bound to grow making it quite comfortable for them to keep investing the same amount or increase it even. 

For those who do not want more than Rs 1 crore, and wish to become a crorepati+, then they can step up their SIP by 5 per cent per annum. In this case he or she would get Rs 1,44,12,322 after 25 years of investment with same 12 per cent post-tax returns!

Needless to say, if you do not invest, especially in a safe investment option like mutual funds, then you can probably forget about your crorepati dreams.