Crorepati Formula: Invest 10,000 Rupees a Month to Get 5 Crores, Learn the Magic Formula
The article discusses a strategy through which investing INR 10,000 per month in a mutual fund can potentially grow to INR 5 crores over time.
The article from ABP Ananda outlines the 'Crorepati Formula' which suggests that by investing INR 10,000 each month into an equity mutual fund, an individual can aim to accumulate a wealth of 5 crores (50 million Rupees) in a span of approximately 33 years. This is based on an assumed annual return rate of 12%. The piece highlights the importance of long-term investments and correct strategies to build wealth through systematic investment plans (SIPs) in mutual funds.
Furthermore, the article addresses common mistakes made by investors, like not holding investments long enough to build a substantial corpus. It emphasizes that even with a good amount of initial capital, the lack of a long-term strategy can hinder wealth accumulation. For example, if someone starts investing at the age of 25, by the time they reach 60, their total investment of about 42 lakh rupees would yield more than 6 crores, far exceeding the 5 crore target.
Additionally, the article introduces a 'Step-Up SIP' strategy, which encourages investors to adjust their monthly investment amounts based on their income trajectory, thereby helping them reach their financial goals more effectively. This approach seeks to educate readers on the potential returns from mutual funds and how to strategically invest over a long period, ensuring they are well-informed to build a strong financial future.