Become Crorepati with Mutual funds: In this article we will see how to become crorepati by investing in Mutual Funds in SIP mode and that too without any step-up SIP. So, let’s go.
How to become crorepati with Mutual Funds
What is your target of making ₹1 crore? Five years, seven, ten, twelve, or fifteen years? Money experts say that investment in mutual funds via a systematic investment plan (SIP) works wonders in the long term since investors get the benefit of compounding. If Mutual Fund (MF) investors want to become crorepati via SIP without an annual step-up, then it is very much possible, in how many years will depend upon the amount they wish to invest.
As per the data from MFI, Funds India Research, a SIP amount of ₹10,000 will make an investor crorepati in 20 years, ₹20,000 in 15 years, 25,000 in more than 13 years, and ₹30,000 in more than 12 years.
An investor can become a crorepati in more than 10 years with a monthly SIP of ₹40,000 without an annual step-up. ₹50K monthly SIP will make you a millionaire in nearly nine years. ₹75K in seven years. A monthly SIP of ₹1 lakh will make an individual crorepati in just five years and ten months.
On mutual fund SIP return, which equity investors can expect in the long run, “One can expect to get around 12 to 16% return on one’s SIP for a long period.”
One thing it is important to highlight here is that “One needs to remember 15 X 15 X 15 rule of mutual funds. This rule says that if an investor invests ₹15,000 for 15 years, then one can expect a 15% return on one’s money and the maturity amount would be around ₹1 crore.”
To generate long-term wealth, investors are betting big on SIP, July data with the Association of Mutual Funds in India (AMFI) showed. The monthly SIP contribution in July was way higher than ₹14,734 crore inflow seen in June and ₹14,749 crore in May, which was the previous high.
Interestingly, the inflows through SIPs have been above ₹13,000 crore since October 2022.
So, what are you waiting for Start your SIP Now. Click here to start your SIP