How can I make Rs. 1 Crore through mutual fund investment?
Pankaj Dave06 February, 2019
Mutual Fund isn’t the magical lamp and you my friend aren’t Aladdin. On a serious note, Rs 1 crore is a huge amount to be generated from the mutual fund space and obviously it will take years to happen. The amount proposed by you will depend on several parameters such as, your invested amount, choice of scheme, time horizon, and most importantly your risk appetite. However, your dream is big but still it is achievable through mutual fund investment. All you have to do is to have some patience and invest for a longer period of time. Investing through SIP is a good choice if you want to save yourself from the wrath of market fluctuations. Remember the phrase, Nothing Is Impossible!
Deepak Vaishnav01 June, 2018
If your investments are wiser, your returns will be nicer!
Generating a corpus of Rs. 1 Crore is absolutely possible through mutual fund investment. For answering your question briefly, I have used the SIP calculator and the results are as shown-
- For achieving your target faster, you will have to increase your invested amount. For instance, with a monthly SIP of Rs. 110,000 for 5 years, you will be able to make Rs. 10,147,426 at an expected return of 16%. And for this, your perfect choice would be midcap and small cap funds. The top recommended funds generally yield returns in the range of 16% to 18%. However, these funds are more volatile towards market fluctuations therefore, before investing make sure that you have a high risk appetite.
- On an monthly SIP investment of Rs. 44,000 for 10 years, you will be able to generate a corpus of Rs. 10,222,919 with an expected return rate of 12%. Here, I have assumed that you are a moderate risk taker and therefore, large cap funds will be a good pick for you. Moreover, the returns generated by top performing large cap funds ranges between 12% to 15% that will surely help to achieve your target.
- If you wish to become Crorepati without taking much risk then hybrid funds might prove helpful for you. These funds deliver 10-12% of returns in the long term. In a tenure of 15 years, you would be able to generate Rs. 10,030,182 on an SIP investment (monthly) of Rs. 24,000. Here, I have assumed the expected return of 10%.
- Debt mutual funds are again a good option if you are a low risk investor. The top ranked debt funds generate 7-9% of returns with least risk. If you are investing in debt funds you will be required to invest Rs. 20,000 monthly for 20 years at an expected returns of 7%.
Now, you must have learned that generating such a huge amount is similar to assemble a jig-saw puzzle. Your invested amount and time, risk appetite, generated returns should be in line according to your financial goal.
I hope that I managed to answer your question well.