How Much Time Does It Take To Become A Millionaire By Investing Rs 500 A Month? Here's What You Need To Know

Who doesn't want to be a millionaire? Surely most of us do, right??When it comes to investing to accumulate a million rupees, the first thought that comes to mind is the money and time required to accumulate Rs 1 million, i.e. Rs 10 lakh. While you can become a millionaire relatively quickly by investing big sums, what if you wish to opt for the rather slow and steady race with a small amount?

Well, that can happen too. Let's take up three of the common investment options chosen by investors - PPF,?Equity mutual funds and?Bank FDs. Let's compare how much time it would take through these investment avenues for you to accumulate Rs 10 lakh and become a millionaire.

Can You Become A Millionaire By Investing Just Rs 500 A Month?

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We shall use an online investment planning calculator tool to determine how much time it takes to accumulate a million rupees (Rs 10 lakh) by investing just a small amount of Rs 500 per month.

If you invest in PPF

Public Provident Fund (PPF)'s current interest rate is 7.1% p.a. So if you invest Rs 500 per month in PPF, you would be able to accumulate Rs 10 lakh in 37 years.

If you invest in Equity mutual funds

Given that equity mutual funds' returns vary across different periods and schemes, let's assume a conservative rate of return of 12%. So if you invest Rs 500 per month (through SIP) in equity mutual funds, you would be able to accumulate Rs 10 lakh in 26 years.

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Also Read:?Daily, Weekly Or Monthly - Which?SIP?Frequency Gives Maximum Returns

If you invest in a bank fixed deposit

Given that bank FD rates currently hover around the 5%-8.5% mark (among public, private and small finance banks), let's assume the rates as 7.5% for calculation. At this rate, you would be able to accumulate Rs 10 lakh in 34 years.

If you wish to invest a bigger amount, you can check the calculation here through this tool. Also,?click here to know how soon you can become a millionaire by investing different amounts in different investment avenues.

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So, as you can see from the above-mentioned examples, investing in equity mutual funds through SIP can help you become a millionaire much more quickly due to its far better returns.?Click here to understand the benefits of investing in mutual funds through the SIP route.?

Also Read:?How Much To Invest In Order To Become A?Millionaire

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