करोड़पति ===> पुं० [हिं० करोड़+सं० पति] व्यक्ति जिसके पास कई करोड़ की संपत्ति हो।
Start with big dreams and make life worth living. – Stephen Richards
Most Indians dream of retiring Crorepati. Assuming 15% of annual returns do you know a small investment of Rs 500 per month can accumulate to around 1.5 Cr by the time a 21 year old retires? Did you know small steps taken at a young age helps you retire rich.
Here is a ready reckoner on how much you need to invest per month to retire a Crorepati. You can use the same table to calculate for your goals e.g child’s education after 15 years.
How to Read the Tables Below
- Decide your time horizon e.g 40 years to retirement
- Decide on how much of compounding returns do you expect from your investment
- HINT: Equity products like Mutual Funds should give you somewhere between 12-15% return in the long term(10 years and above)
- HINT: Debt products like Bonds, Debt Mutual Funds, Recurring Deposits etc. should return you around 8% in long term(10 years and above)
- HINT: LIC of India endowment plans should return you around 8% in long term(20 years and above)
- Decide on how much money you need at the end of your time horizon
- Find the tables below to arrive at your investment amount.
If you decide you can get returns of 15% and need Rs 1.5 Cr after 40 years
- Refer to the Table “Returns At 15% “below since you have assumed return at 15%
- Go to the column “Amount at End of 40 year” as your time horizon is of 40 years
- Find a cell that has nearest value to 1.5 Cr – in the example it is the first cel of the colum
- Now have a look at the column “Investment Per Month” column of the same row the value is Rs 500
So in the example above one needs to invest Rs 500 for 40 years to get a sum of nearly Rs 1.5 Cr assuming return of 15%
Now refer to the tables below and find your own Crorepati story. Click on image to get a larger view of the table.
- This post does not substitute a professional financial advise.Do not make an investment decision based on this post without consulting your financial advisor.
- Author will not be responsible for any loss or gain that you make on your investment after reading this post.
- Mutual fund investments are subject to market risks, read the offer document carefully before investing
- Insurance is a subject matter of solicitation. For more details on risk factors, terms and conditions and exclusion please read the product brochure before conclusion of sale.