Can you become a Crorepati by investing in mutual funds? Can a small investing technique like the SIP help you earn crores? The answer to these questions is YES. Why ask ‘Kaun Banega Crorepati with SIP’, when everyone can become one by just practicing patience.
Let’s look at some examples of how small investments have returned crores to its investors.
Rs 5,000 SIP per month for 20 years
Aarav Shah invested a decent amount Rs 5,000 per month through SIP in Franklin India Prima Fund 20 years ago. His investment has grown to Rs 1.8 Crore. A small investment is Rs 12 lakhs spread over 20 years made Aarav Shah a Crorepati.
Rs 15,000 SIP per month for 15 years
What started as a mere tax saving attempt made 15 years ago has helped Divya Kapoor become a Crorepati. She invested in Aditya Birla Sun Life Tax Relief 96 Fund for saving on taxes. A Rs 15,000 SIP invested in this fund 15 years back is worth Rs 1.02 Crores today.
Rs 2,000 SIP per month for 25 years
What can Rs 2,000 get you? A pair of comfortable jeans or a dress. But what if I say it can make you a Crorepati in 25 years. Will you be able to believe it? Initially, Akhil Kumar didn’t too. He invested Rs 2,000 a month in HDFC Top 100 Fund since its inception in 1996. With just Rs 5,30,000 investment he accumulated a wealth of Rs 75 lakhs. If he continues his SIP and stays invested, then in the next 3 years his wealth will grow to Rs 1.22 Crore at the current annualized return of 18.27%.
Rs 1,000 SIP per month for 30 years
A Rs 1,000 SIP in Reliance Growth Fund made by Aaradhya Seth since its inception in 1995 is worth Rs 69 lakhs now. If she continues to stay invested for another 7 years then a Rs 3,60,000 investment spread across 30 years will be worth Rs 3.13 Crores at the current annualized return of 21.19%.
Joys of compounding
How is it possible that in all the examples stated above the investors ended up earning in crores? The answer is compounding. Albert Einstein rightly said “Compound interest is the 8th wonder of the world. He who understands it earns it and he who doesn’t, pays it.” Compounding is a very powerful concept. All of them earned through compounding. Investing wisely and investing early is very important when the main goal is accumulating wealth in the long term. Staying patient throughout the investment horizon is also very essential to earning through mutual fund investing.
Investing in mutual funds through SIP is strongly recommended to earn wealth. Apart from compounding SIP investing has various benefits and here are few of the many benefits it has. It reduces the average cost of investment in the long run. It inculcates a sense of financial discipline through regular investing. SIP investing levels out market fluctuations by regular investing. SIP and long-term investing is a perfect combination for building wealth.
Now you don’t need all the knowledge in the world to go win crores in KBC. Instead, invest in mutual funds and become a Crorepati. Why wait for Kaun Banega Crorepati with Amitabh Bachan to be aired on TV when instead you can play your own Kaun Banega Crorepati with SIP. Become a Crorepati with small investments.
Start small but end up with a lot. Start your SIP with Upwardly. Speak to an expert at +91 – 73377 40002 or share your contact details on firstname.lastname@example.org