How to become crorepati is a trending search term on Google which shows that we Indians have really high hopes and aspirations. However, these may not always translate into reality. While dreams are the fuel for continually upgrading ourselves and achieving further success, being realistic is the mantra for building wealth. Sounds confusing? Well, achieving success with your investments and building up a massive kitty for the future, let’s say Rs. 1 crore, is not possible through shortcuts. Agreed, there are often stories that we all hear about people getting lucky in the stock market or making sudden windfalls.
However, these are rarer than you think and for every such story of sudden gains, there are countless others which talk about losses, bad decisions and lower profits which we often do not hear about. Without being discouraged from aiming high, the goal is to remember that building up a corpus takes steady financial discipline without any misses/defaults along with staying committed towards future goals and patience which is a major virtue in such cases. Dreams are not fulfilled overnight and the same applies for building up a future corpus as well. You have to choose the right investment avenues, i.e. mutual funds and other types and remain patient and invested for the long haul.
Discipline is the hallmark of success when it comes to investments. You should remember that the earlier you start, the better your chances of building up a suitable corpus of Rs. 1 crore for the future. Too many people put off investments for ages of 40 and above, making a major mistake in the bargain. It always makes sense to start early, possibly from the beginning of your career when responsibilities and financial commitments are on the lower side.
SIP crorepati calculator- Learning more about the same
You should delve deeper into how sip calculator works and this will help you understand how much you can accumulate in the long haul. SIPs or systematic investment plans are the chosen routes for investments made in equity mutual funds. SIPs may be done on a monthly basis or even on a quarterly basis. They may also be possible at regular intervals and function better with regard to equity mutual funds. Investments made through SIPs help in keeping average mutual fund costs on the lower side while also helping you bypass the temptation of attempting to time the stock market. SIPs help in accumulating funds for long-term future goals including buying a home, retirement corpus building and the weddings/higher education of children. Before you commence your investment in a monthly SIP plan, you should know the final amount that you can accumulate over a particular time period. In this case, let us keep Rs. 1 crore as the basic goal for the investment kitty.
The Sip calculator is the tool which helps in calculating maturity value for the series of SIPs or payments that you make across a sustained time period at a growth rate which is assumed approximately. This calculator helps investors work out the amount that they can potentially earn through their investment and the savings that they gain via mutual fund investments. For instance, if you are investing a fixed sum of Rs. 3,000 every month through SIPs, you will naturally want to know the corpus that is accumulated post 15 years, assuming that the growth rate is 12% per annum. The calculator should thus have an amount that will be invested regularly, a particular time period and the assumed growth rate. Various calculators are available online and you can easily work out the amount you need to invest for a particular time period to earn Rs. 1 crore (assuming a moderate growth rate).
Types of Sip calculators that you can use
There are three fields in most SIP calculation tools, namely time period in months/years and the growth rate which is assumed along with the monthly savings amount to be invested. For instance, investing Rs. 5,000 every month for a period of 20 years will help you gain a corpus of approximately Rs. 50 lakh at 12% growth per annum. Some calculators may have an additional field talking about quarterly payments too. In this instance, suppose you invest Rs. 5,000 in a quarterly SIP scheme. Assuming the growth rate at 12% per annum, you will build a corpus of approximately Rs. 16 lakh over 20 years.
Along with the final amount to be calculated, a few calculators may have the option for finding the amount to be invested in SIPs for building a particular corpus. A crorepati calculator can also be found online for letting you know how much to save for building wealth of Rs. 1 crore in a period of 15-20 years. Some calculators may also come with the Step-Up savings option (monthly) and you can periodically increase the amount for greater compounding and faster wealth creation. A few calculators may also provide an option for corpus adjustment in terms of inflation. Through keying in the assumed figure of inflation, you can actually find out how much the final amount will be worth since the rupee’s purchasing power will keep coming down due to inflation.
There are several ways of working out the monthly SIP amount to be invested for building a corpus of Rs. 1 crore. Suppose the returns are 15% for your SIP scheme and the tenor is 30 years, then you will be getting a maturity amount of Rs. 4.21 crore in case you invest Rs. 6,000 every month. Equity mutual funds may help you earn superlative returns in the near future where investing Rs. 200 each day will help you amass more than Rs. 4 crore post three decades of disciplined investing. Such is the magic of compounding. Additionally, factoring in the rate of inflation over the years you can approximately work out the future value of this amount as well. This will give you an idea as to how much you should invest in your SIPs.