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Mutual funds can be a great investment tool to create a corpus of Rs. 1 crore. All you need to do is to determine the term of your investment and risk appetite to achieve this goal.
A mutual fund portfolio may be capable of creating a corpus of Rs. 1 crore, if the correct amount is invested for a definite period in a particular mutual fund scheme.
Investing in equity mutual fund scheme via SIP (Systematic Investment Plan) is the best way to achieve your long-term investment goals. This scheme has the potential to provide superior returns as compared to other asset classes over a period of time. You must choose a mutual fund scheme based on your risk profile.
Let us understand with an illustration of how you can create a corpus of Rs. 1 crore in different timeframes by investing in a Systematic Investment plan of best mutual funds.
If you can spare Rs. 9000 every month, you can start a mutual fund SIP immediately and invest in a mutual fund scheme via one of the best fund houses. If you need help in selecting mutual fund schemes, you can check our recommended top mutual fund portfolios of best mutual funds to invest and pick the one based on your risk appetite and investment capacity.
|Monthly Investment Amount||Rs. 22,000||Rs. 9000|
|Time Period||20 years||20 years|
|Total Amount Invested||Rs. 5,280,000||Rs. 21,60,000|
|Total Corpus||Rs. 10,024,207||Rs. 10,561,268|
|Net Gains||Rs. 47,44,207||Rs. 8,401,268|
|Monthly Investment Amount||Rs. 35000||Rs. 18000|
|Time Period||15 years||15 years|
|Total Amount Invested||Rs. 63,00,000||Rs. 63,00,000|
|Total Corpus||Rs. 10,090,797||Rs. 10,173,729|
|Net Gains||Rs. 3,790,797||Rs. 6,933,729|
|Monthly Investment Amount||Rs. 62,000||Rs. 40,500|
|Time Period||10 years||10 years|
|Total Amount Invested||Rs. 7,440,000||Rs. 4,860,000|
|Total Corpus||Rs. 10,122,386||Rs. 10,096,340|
|Net Gains||Rs. 2,682,386||Rs. 5,236,340|
The example given above was just to give you a picture of how your returns on investment are dependent on multiple variables. Hence, whether your mutual fund portfolio can create Rs. 1 crore for you or not, is a difficult question to answer without knowing what your investment portfolio comprises.
Follow these five simple steps to invest in mutual funds
The best mutual fund that you should opt for differs from other investors based on several factors. As an investor, you should thoroughly evaluate the suitability of the best mutual fund scheme to your unique requirements before investing your money in it. These factors are:
A mutual fund is an excellent investment tool to achieve a coveted corpus of Rs. 1 crore. However, reaching this amount would require you to continue investing money through short and mid-term volatility. Moreover, deciding the investment amount would require you to consider how much you earn, your current liabilities, if any. You also need to figure out the tenure for which you can stay invested. And Voila! You may just create a corpus of Rs. 1 Crore.
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