Who doesn't want to become a crorepati? Surely most of us would wish to, right? But how many of us actually work towards becoming one? Perhaps we can't just sit and wish to win a lottery someday to become a crorepati.?
That¡¯s exactly where wealth creation through investment comes into the picture. Suppose you wish to accumulate Rs 10 crore in, say, 10 years or more,?how much would you need to invest to reach that goal??
Let's take up three of the common investment options taken up by investors- PPF, Bank FDs and Equity mutual funds. Comparing these will give you a fair idea of how much you would need to invest in them to accumulate Rs 10 crore.
Among the safest tax saving and investment options is the?Public provident fund (PPF). Its current interest rate is 7.1% p.a.
To accumulate Rs 10 crore in 10 years, through PPF, you would need to invest ?5.71 lakh monthly to achieve your goal in 10 years.
Bank FDs are one of the most common and traditional investment instruments in our country. While the interest rates vary across different tenures and banks, broadly saying, the range is currently 5%-9% p.a. Let's assume a 7% return on your bank FD for calculation.
To accumulate Rs 10 crore in 10 years, through bank FD, you would need to invest ?5.74 lakh monthly to achieve your goal in 10 years.
Also Read:?PPF vs EPF vs?VPF - How The Three Provident Funds Are Taxed
For equity mutual funds, let's assume a conservative rate of return of 12% p.a for calculation to give you a fair idea of how much you would need to invest for the accumulation of Rs 10 crore over the long term.
To accumulate Rs 10 crore in 10 years, through equity mutual funds, you would need to invest ?4.3 lakh monthly to achieve your goal in 10 years.
Well, these amounts seem too huge to invest per month, right? If you broaden your investment horizon to 20 years, you would be required to invest a much smaller amount on a monthly/annual basis.
Also Read:?How You Can Become A Millionaire By Investing Rs?500?Per Month
To accumulate Rs 10 crore in 20 years, through PPF, you would need to invest ?1.89 lakh monthly to achieve your goal in 20 years.
To accumulate Rs 10 crore in 20 years, through bank FDs, you would need to invest ?1.91 lakh monthly to achieve your goal in 20 years.
To accumulate Rs 10 crore in 20 years, through equity mutual funds, you would need to invest ?1 lakh monthly to achieve your goal in 20 years.
Again, for a further smaller amount than investing lakhs per month, you can accumulate Rs 10 crore in a further bigger tenure of say 30 years, like for retirement corpus.?
To accumulate Rs 10 crore in 30 years, through PPF, you would need to invest ?81,494 monthly to achieve your goal in 30 years.
To accumulate Rs 10 crore in 30 years, through bank FDs, you would need to invest ?79,893 monthly to achieve your goal in 30 years.
To accumulate Rs 10 crore in 30 years, through equity mutual funds, you would need to invest ?28,329 monthly to achieve your goal in 30 years.
Also Read:?5 Low-Risk Tax Saving?Investment?Options For Investors
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