Is this someone It is possible for a person to save Rs 1 crore in this era of inflation if his monthly salary is Rs 25,000. Yes, it is possible but not easy. For this, disciplined investment will have to be made for a long time, only then this financial goal can be achieved. If your salary is between Rs 25,000 to Rs 35,000, then you can also easily save a big amount by following this trick. Come, let’s know how you can create a big fund from this small salary.
Equity Mutual Fund through SIP is the best way
If you want to accumulate a large corpus with a small income, then equity mutual funds through SIP may not be the best way. In a mutual fund SIP, you regularly invest an amount every month. Even though the initial investment is small, it helps you accumulate a large sum in the long run as you get the benefit of compounding.
How much do I need to save every month?
If your salary is Rs 25,000 per month, aim to save and invest 15-20% of your salary every month. Suppose if you invest Rs 4,000 per month in an equity mutual fund scheme through SIP and get 12% annual return, it will take you a little over 28 years (339 months) to save Rs 1 crore, provided you keep investing without any interruption.
If you invest Rs 5,000 per month, you will save Rs 1 crore in a little over 26 years (317 months). If you invest Rs 7,500 every month, or 30% of your salary, you will save Rs 1 crore in 23 years or 276 months.
What to do to accumulate large funds in a short time?
If you don’t want to wait for 28 years to accumulate Rs 1 crore, then increase your SIP amount by 10% every year. Increase this amount every year as your salary increases. If you do this, then in 22 years you will start with Rs 4000 and accumulate a fund of more than Rs 1 crore.
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