How to become Crorepati: By investing in equity mutual funds for a long time, you get the benefit of compounding. Apart from this, you do not even need to time the market.
Have you just joined a job or started your own business? Are you looking for saving and investment options with great returns? You can complete your search by investing in mutual funds. Retail investors invest money indirectly in the stock market through mutual funds. If you follow the rule of 15-15-15 while investing in mutual funds, then you can become a millionaire in a given time.
Understand the 15-15-15 rule
Pankaj Mathpal, Founder and CEO, Optima Money Managers, says that if a person invests in the right funds in a disciplined manner over a long period of time, then he can get good returns. Clarifying the rule of 15-15-15, he said that 15-15-15 means the amount, time and rate of interest to be invested here every month. He said that suppose a person can become a millionaire if he invests Rs 15,000 per month for 15 years and gets an average annual return of 15 per cent.
Total investment to be made
Mathpal told that if a person deposits 15 thousand rupees every month for 15 years, then it is very clear that he will have to invest a total of 27 lakh rupees. If the annual average rate of return is 15 percent, then he will get a total return of Rs 74,52,946 in 15 years on an investment of 27 lakhs. In this way the total value of his investment will be Rs 1.01 crore.
In this way the target will be achieved more quickly
Mathpal explains that after starting investing with Rs 15,000 per month, if a person increases his investment amount on increasing income, then he can achieve the goal of becoming a millionaire even before the completion of 15 years.
There are many benefits of long term investment
Financial planners say that you get the benefit of compounding when you invest for a long time. For example, if you continue to invest Rs 15,000 for 20 years instead of 15, you will get Rs 2.27 crore after 20 years at the rate of 15 per cent. In this way you see that after investing just five more years, the amount you get has more than doubled.
(Disclaimer: Investing in mutual funds is subject to market risk. So, before investing in any fund, please consult your financial planners.)
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