Save just this many thousands every month, and easily create a huge fund of Rs 2 crore!: – ..

Everyone dreams of having a bank balance worth crores of rupees for future security and a luxurious retirement. Often the common man feels that it is not within his reach to deposit a huge amount like Rs 2 crore and for this it is necessary to have a salary of lakhs. But personal finance experts believe that if you start investing smartly at the right time, this goal is not difficult at all. You can easily reach this magical figure through Systematic Investment Plan (SIP) in Mutual Funds. Let us understand how much money you will have to invest every month from your salary to achieve this big goal.

What is the real secret of gaining Rs 2 crore?

According to experts, the real secret of creating a fund worth crores is hidden only in the ‘Power of Compounding’ (power of compound interest). Success in the stock market is not determined by how much you understand the market, but by how much time you spend in the market. The younger you start investing, the more and faster the benefits of compounding. It is common to get an average annual return of 12 to 15 percent in long-term mutual fund investments, and this return is what makes you a millionaire.

How much will have to be invested every month to achieve the target of Rs 2 crore?

If you want to create a healthy corpus of Rs 2 crore, your investment amount will depend on the number of years you are investing. According to the financial math, if you expect 12 percent annual returns:

If you have a time horizon of 30 years, then to accumulate Rs 2 crore you will have to do SIP of only Rs 5,700 every month.

If you want to achieve this goal in 25 years, you will have to invest around Rs 10,500 every month.

Whereas if you have only 20 years time to invest, then you will have to deposit about Rs 20,000 from your income every month.

Travel will become easier with Step-Up SIP

For many youth, it is not possible to save Rs 10 or 20 thousand every month at the beginning of their career. In such a situation, financial experts give the magical mantra of ‘Step-up SIP’. This simply means that you start investing with a small amount (like Rs 2000 or Rs 3000) and then every year as your salary increases, increase your SIP amount by 10 to 15 percent. This method will help you reach your target of Rs 2 crore comfortably without any huge financial burden.

Keep these things in mind while starting investment

The most important advice from experts is that in this long journey of investment, ups and downs in the market are absolutely certain. Never panic and close your SIP when the market is in the red, rather see the recession as a golden opportunity to buy more units. Also, instead of investing your entire amount in one place, keep your portfolio diversified and take the help of a certified financial advisor.