achieving a feat Financial Goals A target of Rs 1 crore is a common aspiration for many investors. The amount to be invested regularly to reach this goal can vary considerably depending on the time horizon and the expected rate of return on the investment. Investment. See here how much you need to invest Deposit Rs 1 crore Above 10, 15 and 20 years.
Here's a calculation from the Economic Times on how to grow a sum of Rs 1 crore, and in how many years:
Build up to Rs 1 crore in 10 years
To accumulate Rs 1 crore in 10 years, investors need to save a substantial amount of money regularly, considering the short time period.Assuming an annual return of 12%, which can be achieved through aggressive investing Equity Mutual Funds Or investing in stocks would require a monthly investment of around Rs 44,640.
Build up to Rs 1 crore in 15 years
For a longer period of 15 years, the power of compound interest works more effectively. Assuming the same annual return of 12%, the monthly investment required would be significantly lower, around Rs 21,020. This shows the advantage of starting early and giving the investment more time to grow.
Build a corpus of Rs 1 crore in 20 years
With 20 years of experience Investment HorizonThe monthly investment requirement reduces even further, giving the benefit of an extended period for compounding. At an expected annual return of 12%, an investor would need to invest around Rs 10,880 per month to reach the target of Rs 1 crore.
Expert Insights
According to an ET report, financial advisors emphasise the importance of disciplined investing and choosing the right mix of assets to maximise returns. “Equity mutual funds have historically delivered around 12% annualised returns over the long term, making them an appropriate choice for long-term goals like accumulating Rs 1 crore,” says Mumbai-based financial planner Rohit Shah.
However, investors should be aware of market risks and ensure that their investment strategy is in line with their risk tolerance and financial goals. Diversification and periodic review of the investment portfolio is also important to stay on track.
key takeaways
Start early: The sooner you start investing, the lesser you will need to invest monthly to reach your goal.
Consistent investing: Regular, disciplined investing is essential to accumulate wealth over time.
Right investment instruments: Choosing the right investment options like equity mutual funds can give you the returns you need to meet your financial goals.
Review and adjust: Review your investments periodically and make adjustments as needed to stay in line with your goals and risk tolerance.
By understanding these principles and planning accordingly, investors can effectively work towards accumulating Rs 1 crore in their chosen time frame.
Here's a calculation from the Economic Times on how to grow a sum of Rs 1 crore, and in how many years:
Build up to Rs 1 crore in 10 years
To accumulate Rs 1 crore in 10 years, investors need to save a substantial amount of money regularly, considering the short time period.Assuming an annual return of 12%, which can be achieved through aggressive investing Equity Mutual Funds Or investing in stocks would require a monthly investment of around Rs 44,640.
Build up to Rs 1 crore in 15 years
For a longer period of 15 years, the power of compound interest works more effectively. Assuming the same annual return of 12%, the monthly investment required would be significantly lower, around Rs 21,020. This shows the advantage of starting early and giving the investment more time to grow.
Build a corpus of Rs 1 crore in 20 years
With 20 years of experience Investment HorizonThe monthly investment requirement reduces even further, giving the benefit of an extended period for compounding. At an expected annual return of 12%, an investor would need to invest around Rs 10,880 per month to reach the target of Rs 1 crore.
Expert Insights
According to an ET report, financial advisors emphasise the importance of disciplined investing and choosing the right mix of assets to maximise returns. “Equity mutual funds have historically delivered around 12% annualised returns over the long term, making them an appropriate choice for long-term goals like accumulating Rs 1 crore,” says Mumbai-based financial planner Rohit Shah.
However, investors should be aware of market risks and ensure that their investment strategy is in line with their risk tolerance and financial goals. Diversification and periodic review of the investment portfolio is also important to stay on track.
key takeaways
Start early: The sooner you start investing, the lesser you will need to invest monthly to reach your goal.
Consistent investing: Regular, disciplined investing is essential to accumulate wealth over time.
Right investment instruments: Choosing the right investment options like equity mutual funds can give you the returns you need to meet your financial goals.
Review and adjust: Review your investments periodically and make adjustments as needed to stay in line with your goals and risk tolerance.
By understanding these principles and planning accordingly, investors can effectively work towards accumulating Rs 1 crore in their chosen time frame.