A bank balance of Rs1 crore is tempting for any individual – be it a salaried individual or a middle-class individual. In order to lead a comfortable and content life, you need to have a financially secure future. And to be financially secured, you need to exercise financial discipline and adopt a well-defined financial strategy. This embraces saving more, making informed investment decisions, and finally cutting down on your expenses.
Can you become a crorepati in 15 years?
The journey of becoming a crorepati is indeed difficult, but not impossible. If you set your heart to it, you can become a crorepati in 15 years.
Plan to help you become a crorepati in 15 years
Following are some important points that you should consider while developing a financial plan to create 1 crore from your investments in 15 years.
Don’t shy from professional help: A financial planner will aid you to develop a well-rounded financial plan which not only takes care of your future expectations but also meets your current expenses.
Invest in mutual funds: Mutual fund investments are one of the highest return yielding instruments that are available to an investor. You need to find the most suitable mutual fund schemes that best suit your financial profile.
Diversify your investments: This will help you mitigate the risk involved and get higher returns on your investment. Diversifying your investments across different types of mutual funds also helps to reduce the impact of poor returns that might occur from any investment. Asset allocation is one of the best ways to diversify your investments.
Tax Saving Investments: Several tax-saving investment avenues allow you to claim a tax deduction of up to Rs1.5 lakhs from your total taxable income. Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Pension Scheme (NPS) are some of the investment havens that offer stable returns along with tax reduction.
Through disciplined financial planning and investment acumen, you can easily become a crorepati in 15 years. However, make a point that the value of money is bound to fall over time due to inflation. In simpler terms, Rs. 1 crore might seem a significant amount now, but in relative terms, the purchasing power parity could lessen. Hence, you should try to invest as much as possible to achieve your target as soon as possible. Investing in mutual funds for an extended period will help you to grow your income and become a crorepati. However, invest in mutual funds online keeping your risk appetite and investment horizon in mind. Happy investing!