Many individuals like to start investment when they have large amount to invest. But if you plan your finance and invest in right instrument you will realised someday on your dreams. This is the best way to achieve crorepati dream by investing in equity mutual funds for good returns for long time. Thus you can check how much to invest to get 1 crore in 10 years.
Here are some points to remember to make money
If you have few amounts to invest then you have to wait for long time to reach your goal. And you have more money to invest in equity mutual funds to reach your goal then plan and invest properly. Moreover, you ask yourself two questions before investing in mutual fund and equity MF’s.
How much have to invest and how long to reach your destiny.
As a young investor you may easily take high risk by saving few amounts with more returns to achieve your financial goals. If you are in middle age you can take moderate risk to become crorepati. Thus, if you have less money to invest at an early age to become crorepati then invest Rs 700 per month at 15% rate of return to collect desired amount.
However if you want to start later then you need to invest more money to reach your goal. For instant you need Rs 5500 per month for 25 years at 12% rate of return then you will be able to make Rs 1 Crore more or less. So if you invest large amount of Rs 13,500 per month at an assumed 10% rate of returns for 20 years and will allow you to make Rs 1 Crore.
How you will select fund?
If you want to earn 12-15% of return on your investment for that you need to select good equity stocks or equity MF’s to avoid risk to an extent. When you are selecting equity MF you need to check that your portfolio must have 30-40% of mid-cap or small cap funds and 60-70% diversified, large cap funds to maintain an aggressive portfolio.
Thus, to get 10-12 per cent return you can invest in balanced to hybrid fund to maintain moderate risk portfolio. In such case, you can avoid to invest in mid-cap or small-cap fund and also avoid making investment in risky stocks. You can see Do You Have Vision & Goals for Your Future?
Are there any alternatives?
You can achieve financial goal by investing money in pension plans, NPS also. But returns offered under such schemes are not stable in market and returns are change as per government rules. And investing in an instrument like fixed deposits, national savings certificate may not help you to reach goal within the maximum time period.
Also you have to invest for longer time and need to follow proper asset allocation strategy to achieve your target amount. For this you must take help of a financial adviser before making such financial decisions. For more details you see simple tips to earn 1 crore. Check 8 reasons to invest in Equity Mutual Funds
As per above, you make sure to know that any investment made in equity stocks or equity mutual fund are not guaranteed. Because they are depend on financial market and returns are also volatile and not fixed. So you don’t know how to track a mutual fund scheme? Then check how to track the performance of your mutual fund. Thus check value of 1 crore after 30 years.