Money is necessary to fulfill our needs and desires. Unlike most politicians, money raised in an honest way brings us immense happiness and peace. If we plan and invest our hard earned money we can see Rs 1 crore in our bank account. Let’s find out how.
There are many ways to invest money like real estate, mutual fund, stock market, gold, bank deposit. How long will it take to reach the saving target of Rs.1 crore through that? Let’s see how much to save per month.
The table shows the 10-year average returns for the above investment types as of 2022.
Here’s how much it would take for any type of investment to add up to Rs 1 crore assuming this return.
10,000 per month for 21 years in an equity-based mutual fund. If you want to shorten the years you have to increase the amount, if you invest Rs.20,000 per month you will have Rs.1 crore in your bank account in 16 years.
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Real estate investments are growing at 10.4% annually. If you invest Rs 10 lakh today, it will grow to more than Rs 1 crore in the next 24 years. If you invest Rs 20 lakh, it will grow to Rs 1 crore in 17 years.
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Stock market investments have given returns of around 10% per annum in the last 10 years. It is an inherently risky investment. Investing in details is a slippery slope. However, let’s assume that if you invest in this, you can get Rs.1 crore. If you continue to invest in the stock market for 23 years at Rs.10,000 per month, you will get a corpus of Rs.1 crore. If it is Rs.20 thousand per month, the same Rs.1 crore can be withdrawn in 17 years.
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Term Deposit is the safest investment in existence. This also has some risks depending on the bank management. However, mutual funds are less risky as compared to the stock market. The 10-year average annual return on term deposits is 7.3%. If you invest Rs.10,000 per month for 27 years, you can get Rs.1 crore. If you build Rs.20 thousand for 19 years, you can get Rs.1 crore.
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Many people like to invest in gold as well. Investment in jewelery is depreciating. That is why investing in gold bonds etc. can give growth. Gold has given an average return of 6.7% over the last 10 years. According to that, if you build Rs.10 thousand per month for 28 years, you will become a millionaire. If the amount is increased to Rs.20 thousand, the years will be reduced to 20.
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