How to be a crorepati in India: Top tips to make money
How to be a crorepati in India: First, remember there are no shortcuts. Stock market investors must know that they can make money in the long term as they stay invested for a longer period of time. Trying to time the market is not the right strategy. How long is enough? It is only after 10 to 15 years that average annual returns will exceed anything that debt products could have provided. Here is how you can do it:
Target: Rs 1 crore. Time: Over 20 years.
Solution: It is based on 3 broad premises: 1. Ensure you are invested predominantly in equities; 2. Instead of investing in fits and starts do so regularly with a systematic approach; 3. Reinvest the gains you are making. Your principal generates returns and these returns generate further returns on reinvestment. Photo: PTI
Adopt Systematic Investment Plan (SIP) strategy in equity mutual funds. This ensures even market volatility works in favour of the SIP investor. Photo: PTI
The most important question: How much to save to reach Rs 1 crore in 20 years? Photo: PTI
Start with an SIP of Rs 4331.15 per month. Assumption is that your equity fund will compound at an annual rate of 18%. Photo: PTI
If the returns from the equity fund are lower at a CAGR of 14%, then the required SIP to reach your corpus goes up to Rs 7685.41 per month. Photo: Reuters
What kind of fund to invest in? Diversified equity fund. Photo: Reuters