Investment of 5000 Rupees a Month Can Make You a Crorepati Soon!

Investment of 5000 Rupees a Month Can Make You a Crorepati Soon!

Money doesn’t buy you happiness, they say! But it is ironic how most of the things that make you happy need money! Security, which is one of the most important things today, comes with money. But having money won’t do it all. Investing it in the right place at the right time is also very important.

There is a general conception that investment should be planned with a heavy budget. However, it is high time for people to realize that investing small amounts periodically is a great way to plan ahead. Systematic Investment Plan (SIP) in an equity program is a great way to invest as little as 5000 INR/Month. This small investment can guarantee a corpus of 1 crore in about 20 years.

 

Increasing the Amount Every Year

The SIP allocation will increase 10% every year; that is the amount invested during the first year is 5000 INR/month. The second year it will 5500 INR (5,000+10% of 5000). The amount to be paid will increase to 6050 INR (5500 + 10% of 5500). This will continue through the tenure of the investment plan (21 years).

Monthly SIP of 5000

Investing via SIP is an ideal way as the amount to be paid doesn’t pinch your pockets. People, mostly the middle class audience may find it very convenient to invest in an equity mutual fund via SIP, as it helps them achieve their long-term goals. Investing in an equity program guarantees superior returns as compared to other asset programs. This investment is also very useful for those looking to beat inflation. Apart from that, investing in an equity mutual fund also offers tax benefits.

Young employees who can spare 5000 INR/month are advised to invest in an equity fun via SIP so they get a lump sum amount towards the end of the tenure. There are a number of invest firms and consultants who can browse through a number of schemes and advise on the best plan according to your feasibility.

Track the Investment

You have understood the investment plan and you have also decided of the right plan to invest but you are not done yet! It is very important to keep track of the performance of the scheme that you have invested in. the performance of the scheme should be reviewed at least once in every six months and decide whether or not to continue with the investment.

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