Crorepati Formula: You can become a millionaire even by depositing a small amount. It’s not impossible. Now in how much time you will become a millionaire, it depends on your ability to save. If your goal is to become wealthy in 20 years, then you can also achieve this through regular and disciplined investment of an amount. It is also important that you choose the appropriate investment option for this time period and keep reviewing your investment portfolio from time to time. Come, let us know which is the investment formula that can make you a millionaire in 20 years.
To become a millionaire in 20 years, invest a small amount here
If you talk to any financial advisor or compare the historical returns of different asset classes, you will find that equity shares have given the highest returns as compared to real estate, gold or debt. It is not necessary that you understand the stock market to invest in equity shares. For this you can rely on the expertise of Mutual Fund Managers. You can earn great returns by investing through Systematic Investment Plan (SIP) in well performing Equity Mutual Funds with a tenor of 20 years. However, before investing in mutual funds, you must review your risk appetite and the current financial situation so that the investment you have started does not stop in the middle.
How To Become Crorepati
If your goal is to become a millionaire in 20 years, then it is not impossible. For this you will have to save Rs 333 per day. That means you have to save Rs 10,000 in a month. You should invest this amount in equity mutual funds through a systematic investment plan. Although Tata Digital India Fund has given a return of 27.62 percent, ICICI Pru Technology 26.70 percent, SBI Tax Advantage 23.90 percent and Quant Tax Plan 23.65 percent in terms of 5-year returns, but we assume an average return of 13 percent. Huh. If you get a return of even 13% annually, then your invested amount will increase to Rs 1,13,32,424 in 20 years. The principal amount of your investment will be Rs 24,00,000 only. This is called the power of compounding. If you increase your investment amount from time to time, then you can achieve this goal more quickly.
Follow these three formulas
It is true that just saving or investing is not enough to become a millionaire. It is also important to ensure that as your income increases, you increase the investment amount accordingly. Do not spend unnecessarily and do your financial planning from a long-term perspective.