By Admin 
Mutual Fund Investment: Building a wealth of Rs 10 crore may seem difficult to many, but it can be achieved with the right investments and long-term discipline. According to financial experts, time plays the most important role in achieving big financial goals. The sooner investment is started, the bigger a fund can be created by investing less money.
Today, SIP (Systematic Investment Plan) of mutual funds has become a popular way to make money in the long run. At the same time, the return received in this fund depends on the performance of the market and no guarantee is given for it.
How to create a fund of Rs 10 crore from SIP of Rs 10 thousand?
If a person starts a SIP of Rs 10,000 every month and increases the investment amount by 10 percent every year, then after a long time a big fund can be created from it.
SIP Investment: Direct loss of Rs 2.42 crore due to delay of 5 years, start SIP today itself, understand the mathematics of investment.
According to the calculations, if the average annual return is considered to be 12 percent, then in about 31 years this investment can increase to about Rs 10.18 crore. During this period, a total of about Rs 2.18 crore will be invested by the investor, while the remaining amount of Rs 8 crore will increase due to the power of compounding.
Increase investment amount to become a millionaire soon
On the other hand, if a person starts with a larger amount, the target of Rs 10 crore can be achieved in less time. For example, if an initial SIP of Rs 25,000 is done and it is increased by 10 percent every year, then a fund of Rs 10.69 crore can be created in about 25 years. This total investment amount will be around Rs 2.95 crore.
At the same time, if a person wants to achieve his goal quickly, then he can reach Rs 10 crore in 20 years with a SIP of Rs 50,000 every month. Even though the SIP amount is high, a lot of work will be done in time.
Ethanol: Now airplanes will fly on ethanol, polluting jet fuel will be replaced! Who took the decision?
Step-up SIP increases the pace of wealth creation
According to experts, step-up SIP can be a better way to create wealth in the long run. In this, along with increase in income, the amount of investment is also increased, due to which a bigger fund can be created without financial pressure.
However, before investing it is very important to understand your financial situation, goals and risk appetite. Mutual funds are market-related investments, so there is no guarantee of returns in them. Therefore, before taking any big investment decision, you must take advice from a financial advisor, it can be a better option for you.