Being a crorepati is not just a question but a bucket full of aspirations, hopes, dreams, and desire, which certainly everyone wants before it gets spilled off.
India is home to more than 2,50,000 Crorepati and it is reported that in the next 10 years the figure will be 1 million i.e. A million Crorepati just in India!
Many people nowadays believe that the more they save the better their chances are of becoming rich. They do just what their parents did – Save More, Start a Bank FD. They believe that ensuring the safety of their money is equivalent to ensuring the safety of their future even if it comes at a lower interest rate.
If you also believe that, you got it all Wrong!
The world’s super-rich invests in businesses, so calling it to be a tried and tested method may not be wrong. But this suggestion comes with a question too, where to invest? A difficult question, with a very simple solution- the Equity market.
Since not everyone has the time and expertise to analyze every listed company. I would recommend you to start investing in Mutual Funds. Based on your risk appetite you may allocate your investment between Debt and Equity. Equity Mutual Funds have delivered 15% on an average over a long-term, a way more than from FDs.
Now coming to how much to invest. If you invest a mere Rs.5,000 every month for 25 years and if your money grows by 15% every year on an average (CAGR), then you will get Rs.1.57 crores! And that too on just investing just Rs.33,00,000 in 25 years. 25 years might look like a long time but if you start young you would thank your younger self after 25 years for starting with the investment. It’s better to start working on your dream now rather than regretting it later.
Thus, we can say, the right investment choice and a flexibility in the time horizon can make you a retire as a crorepati even when you start with a small amount. And for that, you have to do one simple thing, develop your risk appetite and always invest in something which gives more returns than the inflation in fulfilling your long-term goals.