How to Make 1 Crore Using Mutual Funds in 20 Years
Want to accumulate 1 crore in 20 years? A disciplined
Systematic Investment Plan (SIP)
can help you achieve that milestone easily!
Power of Compounding
Mutual funds grow through
compounding
, meaning your returns generate more returns over time, helping you reach big goals like 1 crore.
SIP Amount for 12% Return
To achieve 1 crore in 20 years with an assumed
12% annual return
, you need to invest around
7,000 - 8,000 per month
.
SIP Amount for 10% Return
If the return is slightly lower at
10% per annum
, the required SIP will be around
9,000 - 10,000 per month
.
Long-Term Equity Investment
Invest in
equity mutual funds
for higher returns over the long term. Historically, equity funds perform well over 15-20 years.
Example Calculation
For example, investing
8,000 per month
for 20 years at 12% returns can lead to a corpus of around 1 crore!
Stay Consistent
Consistency is key. Stick to your SIP plan, even during market fluctuations, and watch your wealth grow to 1 crore! Start now!