Earn 1 to 2 Crore Rs by investing Just Rs 500 in SIP Mutual Funds Share Market, crorepati kaise bane

Please watch: “How to Earn Rs. 7.5 Crore from investing Just 75 Rs Daily in SIP Mutual Fund | Full Detailed Plan”
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Hi friends here is how you can Smartly invest your Money and earn 1 to 2 Cr Rupees from investment of just 500 rs Monthly.

How does one become a crorepati? We have all thought about this one question a lot. Is it really possible to have that number? The answer lies in the equity market, to be more more specific in systematic investment plans (SIPs) of equity mutual funds.

For example, Rs 20,000 invested through a monthly SIP for about 15 years can grow to over Rs 1 crore, if you assume a rate of return of 12 per cent, says Nimesh Shah, MD & CEO, ICICI Prudential AMC. So how does one go about it? Read on

An SIP is a financial planning tool offered by mutual funds that allows you to invest small amounts at regular intervals over a long period. It also allows one to use the power of compounding to generate big returns in a portfolio.

In the equity market, the general approach to investing is to time the market whereby one tries to buy a stock or an index at a certain level and book profit when it has run up significantly.

That approach often leads to “common mistakes in asset allocation by common investors, who tend to buy high (caused by exuberance of a bull market) and sell low (due to the hopelessness caused by a bear market),” says Gautam Sinha Roy, Fund Manager, Motilal Oswal AMC.

Start early

Starting your SIP early is the first condition to becoming a crorepati.“One needs to start early. This will help the investor use the power of compounding. Especially over a long period, the difference between starting to invest early versus starting late can make a significant difference to your wealth,” an analyst said.

A tiny bit of delay can cause a significant gap in your final output. “Research has shown that even a small delay in investing can cause wide output gap at the time of redemption in the long run,” he pointed out.

What’s the next step?

“Investors should first chalk out their long-term financial plans to identify how much mutual fund investment one needs to make every month and what should be the debt-equity mix,” says Gautam Sinha Roy of Motilal Oswal AMC.

Talk to the right guy

The next step is to decide on the right fund house and fund manager. They are the guys who will be looking after your money every single day till you redeem and, therefore, they are like the coach on who you want to entrust your life’s savings.

“A lot of time and energy is spent in this process. Once the basic plan is inked, it is really a simple matter of unemotional execution by investing the routine SIP instalments on the scheduled dates,” Roy said.

Mix it up

SIPs are not just about pouring all the money into the equity market. The mark of a great portfolio is distribution of risk and diversification across asset classes.

“One important element in mutual fund investing is the split in asset allocation between equity and debt. This needs to be reviewed every few years to see if the risk profile of the investor has changed and, hence, allocation split needs to be changed,” Roy said.

Become the gardener

SIP investing is not about putting in some money and forgetting it, the way Warren Buffett will have you do it. It is more like being a gardener, who looks after his plants almost every day just to ensure weeds are not cropping up.

“Investors need to manage their investments at an overall portfolio level instead of approaching them in a piecemeal fashion. SIPs are constituent of such a portfolio and as such require attention from time to time. An investor must, therefore, monitor the performance of an SIP with reference to its benchmark and ascertain the long-term wealth creation potential that it carries,” an analyst said.

Taking home the crore

If you have reached this point, you did well. But just investing is not enough, you have to take home all that moolah too. There’s a systematic way to do that, too. Systematic withdrawal plans (SWP) can help you redeem your investment when you hit the retirement buzzer.

Whatever be the case, the investment objective must remain sacrosanct and the investment plan must be made to accomplish the goal within the given time horizon and within a prudent risk framework


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