Reaching the figure of Rs. 1 crore via investments is a dream for any retail investor. However, there are two questions that come with to it – how to become crorepati and how fast to become crorepati. One way to calculate this is by using something called as a crorepati calculator.
Reaching an eight-figure sum is a benchmark and it would take a lot of evaluation and patience at your end. And achieving the same is no less than a time-consuming task. You have to ensure that you keep saving and investing time and again into different kinds of securities. This will ensure that you are moving with the time and making the best of the different securities that are launched.
Let’s understand how you can reach a corpus of Rs. 1 crore.
If you have a lump sum of Rs. 10 lakh with you, there are quite a few areas where you could invest your money.
Mutual funds: Mutual funds are a popular investment option among retail investors. With mutual funds, you get to invest in the securities of your choice. Since you aim to make Rs. 1 crore, you can choose such securities that are likely to give a good return in the long run instead of short-term securities. Also, since your main aim here is to make money, it would be ideal to invest in low-risk securities.
ELSS: Equity Linked Savings Scheme (ELSS) is another popular scheme of investment for retail/individual investors. In these, a large chunk of investment is done in equity or equity-related investments. Another reason why ELSS is popular amongst individuals is that it serves as a good tax-saving scheme. Investment up to Rs. 1,50,000 in ELSS is exempt from taxation as per Section 80C of the Indian Income Tax Act.
Risky securities: These securities offer attractive returns but a major risk factor of losing your investment money is there. If you have strong financial evaluations, you can think about investing in these since they will fulfill your dream of becoming a crorepati faster. However, you should be prepared to take the fall of loss just in case things do not go your way.
IPOs: Initial Public Offering (IPO) in a reliable company can offer you good deals and you can earn a lot of profit by investing in them. Especially in the current times, with so many IPOs round the corner, you can plan to invest in these.
Apart from having an investment plan, it is important for you to introspect whether Rs. 1 crore would be sufficient to fulfill all your future financial goals. The reason for this is that it may look like a big amount today but 15-20 years down the line, it might not be as big an amount due to inflation.