Nowadays everyone dreams of becoming a millionaire. However, for this you do not need to start with a huge amount. If you start investing early and keep investing consistently for a long time, even small savings can turn into a big fund over time. The most important thing here is the ‘power of compounding’, which continuously increases the returns on your investment. By investing just ₹5,000 every month, you can build a corpus of around ₹1 crore in the long run; However, the outcome depends on where you invest and how much return you get.
**Fund worth crores can be made by investing in gold**
Investing in gold can be a great option for the long term. If you invest ₹5,000 every month, you can reach the goal of ₹1 crore in about 29 years.
Monthly investment: ₹5,000
Time limit: 29 years
Estimated Annual Return: 10%
Total investment: ₹17.40 lakh
Estimated Returns: ₹85,19,021
Total Value: Approx ₹1,02,59,021
**How to reach the target of ₹1 crore**
Mutual fund SIP is a great option for long term investment. Although there is no guarantee of returns, there are strong chances of getting good returns in the long run. Investment Method: Mutual Fund SIP
Monthly investment: ₹5,000
Duration: about 25.5 years
Estimated Annual Return: 12%
Total amount invested: ₹15.30 lakh
Estimated Interest/Return: ₹85,72,957
Total Fund Value: Approx ₹1.01 Crore
Deposit ₹1 crore through PPF
Also, if you prefer low risk, then Public Provident Fund (PPF) can be a good option for you. However, it has low returns, which means it may take a long time to reach the target of ₹1 crore. Annual investment: ₹60,000
Estimated interest rate: 7.1%
Period: about 37 years
Total investment: ₹22.2 lakh
Interest received: ₹83.27 lakh
Amount to be received on maturity: Approximately ₹ 1.05 crore