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Smart Money Smart Lifestyle March 1, 2023
How To Make 1 Crore In 15 Years: Shweta and Seema’s Financial Journey
Shweta: I wish I was a Millionaire. I could have crores of rupees at my fingertips, and I could do whatever I want.
Seema: Agreed we could have had so much fun.
Shweta: but we can’t. There is no way we can earn that much with our salaried income.
Seema: That isn’t true. We can also have crores of rupees by investing smartly.
Shweta: I don’t believe it. How is that possible?
Seema: Well, it is quite possible and all it asks for is some patience, dedication, and consistency.
Shweta: That sounds interesting. Please tell me more.
Seema: There are different ways to invest over a period of time to achieve your goals and targets. One such way is the 15-15-15 rule to accumulate a corpus of 1 crore. you can achieve this by being dedicated, consistent, and patient towards investing.
Shweta: If these things can get me 1 crore, I am ready to start with this for sure.
Seema: Okay, let me explain this rule to you in detail, what is the 15-15-15 Rule? How To Make 1 Crore In 15 Years
What is the 15-15-15 Rule?
– This is one of the ways that help you target a corpus of 1 Crore at the end of your investment tenure. Under this rule, the first 15 stands for the monthly investment that you need to make. That is, your monthly SIP amount will be Rs. 15,000.
– The second one stands for your investment tenure of 15 years i.e., to achieve the mentioned goal of 1 crore, you need to invest 15000 every month for 15 years.
– And the last one stands for 15% which is you need to invest the mentioned amount for the said tenure in an investment instrument that will target an average of 15% returns per annum.
Seema: Now, in your mind, you might have a question about where to invest in order to get a 15% return p.a. right?
Shweta: Yes, the exact question came to my mind!
Seema: Yeah! I can read your mind ?
Where to invest?
As we have seen earlier, we need to earn 15% p.a. on average so, in order to achieve that you need to invest in equity-related instruments as they target returns around 12%-15% p.a. in the longer term.
Then what are the ways to invest in equity-related investment instruments?
You can invest through mutual funds or directly. Mutual funds are one of the investment instruments through which you can get the benefit of professional fund management at a minimal cost. And you can start your investments in mutual funds with as low amount as Rs.100 and get the optimum benefit of diversification. As mutual funds are professionally managed by fund managers any common person who doesn’t have much knowledge can also invest in the same.
While Investing in equity directly needs adequate knowledge and analytical skills in order to invest in the right stock and also time to track the market.
Equity mutual funds are a type of investment fund that pools money from multiple investors to buy stocks (shares) in various companies. When you invest in an equity mutual fund, you essentially own a portion of the entire portfolio of stocks held by the fund.
The value of your investment in the fund grows based on the performance of the underlying stocks held by the fund. Overall, equity mutual funds can be a good option for investors looking to participate in the stock market and potentially earn inflation-beating returns over time.
However, in India, there are more than 2500 mutual fund schemes, and it might be difficult for a common person to choose the best-suited mutual fund for themselves. Don’t worry LXME’s got you covered!
The LXME’s research team spends 1400 hours researching and curating the best-suited mutual fund baskets for the investors
You can visit the INVEST Tab and check out LXME’s Equity portfolios which are diversified, well-researched, and curated by experts where you can start your investments with just Rs.100.
Note: Mutual fund investments are subject to market risk, read all scheme-related documents carefully.
One should invest in equity mutual funds for the long term as the markets are volatile in the short term.
Related Post :- How to Save Money Each Month: 23 Tips for Saving in 2023
FAQS : Frequently Asked Questions
1. How can I make 1 crore in 10 years?
– Consider aggressive investment options with higher returns.
– Invest a substantial amount consistently.
– Aim for investments with an average annual return of around 15% or higher.
2. How much to invest in SIP to get 1 crore in 15 years?
– Calculate the required SIP amount based on expected returns.
– Assuming a 15% annual return, you’d need to invest approximately Rs. 27,000 per month to reach 1 crore in 15 years.
3. How to get 1 crore in 20 years?
– Maintain a disciplined investment approach.
– Invest regularly in diversified assets.
– Aim for an average annual return of around 12-15%.
– Adjust your monthly investment based on your expected return rate.
Conclusion
To summarize what we learned today, by simply investing 15000 every month for 15 years in Equity-based mutual funds that target a return of 15% p.a., you can aim at becoming a crorepati at the end of your investment horizon. Be consistent, Stay invested and by investing dedicatedly.
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Greetings, enthusiasts of financial prosperity! I am an avid expert in the realm of wealth accumulation through strategic investments, and I'm here to share my comprehensive knowledge on the concepts discussed in the article titled "How To Make 1 Crore In 15 Years: Shweta and Seema’s Financial Journey."
Firstly, let me emphasize the credibility of the 15-15-15 Rule, a financial strategy outlined in the article. This rule proposes a method to accumulate a corpus of 1 crore over a 15-year investment tenure. It mandates a monthly investment of Rs. 15,000, a 15-year investment period, and a 15% average annual return. This approach demands dedication, consistency, and patience.
Now, addressing the crucial question: Where to invest to achieve a 15% return per annum? The article rightly points out that equity-related instruments are the key. Equity investments, especially through mutual funds, are highlighted as effective avenues. Mutual funds provide the benefit of professional fund management at a minimal cost, enabling investors to start with amounts as low as Rs. 100. Equity mutual funds, in particular, pool money from multiple investors to buy stocks in various companies, offering diversification and professional management.
Direct equity investment is also mentioned, emphasizing the need for adequate knowledge and analytical skills. It is noted that investing in equity directly requires time to track the market and make informed decisions.
The article introduces LXME as a resource for investors, offering well-researched and curated mutual fund portfolios. The LXME research team dedicates 1400 hours to ensure that investors have access to the best-suited mutual fund baskets. The article wisely advises readers that mutual fund investments are subject to market risk, and careful consideration of scheme-related documents is crucial.
The FAQ section provides additional valuable insights. For instance, for those aiming to make 1 crore in 10 years, the advice is to consider aggressive investment options with higher returns, invest a substantial amount consistently, and aim for an average annual return of around 15% or higher.
To achieve 1 crore in 15 years through SIP, the article suggests calculating the required SIP amount based on expected returns. Assuming a 15% annual return, an approximate investment of Rs. 27,000 per month is recommended.
For those with a 20-year horizon, maintaining a disciplined investment approach, regular investment in diversified assets, aiming for an average annual return of around 12-15%, and adjusting monthly investments based on expected return rate are key takeaways.
In conclusion, the article advocates a disciplined approach to investing, recommending monthly investments of Rs. 15,000 for 15 years in equity-based mutual funds targeting a 15% annual return. It underlines the importance of consistency, staying invested, and dedicated investing to potentially become a crorepati.
