Mutual funds and Stocks are best investment product and will beat inflation easily! We can make 1 Crore by investing in Mutual funds. But how it is possible? Let us discuss how to make 1 crore by investing in mutual funds. Before that understand the power of compounding for monthly 1000 rupees investment.
To get better returns, you have to invest in risky products like Mutual funds and Stocks.
Start your mutual fund investment with Nifty and Nifty Junior index fund for long term returns. If your investment objective is more than 10 years, start with Nifty index funds. It is low expense ratio funds in India.
If you invest Rs 7000/- every month as a SIP in Mutual funds, expect only 15% per annum for 20 years
Invested Amount = Rs 16,80,000/-
Returns p.a at 15% = Rs 89,31,685/-
Total value = Rs 1,06,11,685/-
In case you want to invest in both mutual funds and stocks, Invest Rs 5000/- in Mutual funds (via SIP) every month
Rs 2500 in Nifty Index fund.
Rs 2500 in Nifty Junior / Nifty Next fund
Go for mutual funds. Remember that if you don’t know how to drive, you have to trust a driver. Similarly, you don’t understand equity, trust an expert.
Why invest in passive mutual funds. “Large-cap funds have underperformed for multiple reasons, a primary reason is that after SEBI changed its category in 2018 and restricted the universe of large caps, funds have found it difficult to beat the index. We have been recommending switching to index funds in the large-cap space,” said Vidya Bala, founding partner and head of research and product at Prime Investor.
Nifty Index Funds :
These funds replicate the Nifty 50 by investing in securities of the Nifty 50 in the same proportion / weight. Following on Nifty index funds in Indian mutual fund market.
UTI Nifty Index Growth Direct Plan
DSP Nifty 50 Index Growth Direct Plan
HDFC Index Nifty 50 Growth Direct Plan
ICICI Prudential Nifty Index Growth Direct Plan
SBI Nifty Index Growth Direct Plan
Nifty Next Index Funds :
To invest in companies which are constituents of NIFTY Next 50 Index (underlying Index) in the same proportion as in the index and seeks to generate returns. Following are Nifty Next index funds.
UTI Nifty Next 50 Index Growth Direct Plan
DSP Nifty Next 50 Index Growth Direct Plan
ICICI Prudential Nifty Next 50 Index Growth Direct
Motilal Oswal Nifty Next 50 Index Growth Direct Plan
Stock market investment :
Start your stock market investment in company with moat. Select the top player and start buying the stocks of the companies in small chunks. In long term, it would give better returns. Do not gamble in stock market. Most of time we are doing traders work in investor’s hat. That is wrong. Invest for long term horizon to know the power of compounding.
Long term investment strategy is the key.
Invest Rs 5000/- in Fundamentally strong companies (via SIP) every month. Select the top stocks in each sectors and invest in monthly SIP mode(Manual SIP)
Rs 1000/- in Pharma sector
Rs 1000/- in Banking sector
Rs 1000/- in IT sector
Rs 1000/- In FMCG sector
Rs 1000/- in Auto sector
If you cannot tolerate a 30% loss in your stock, you shouldn’t buy that stocks. Invest in 5–10 stocks of different sectors. Learn fundamentals analysis, valuation ratio of the stock and moat of the stock .
If you cannot tolerate a 30% loss in your stock, you shouldn’t buy that stocks.
Whatever you earn save ATLEAST 30% of the monthly salary.
Invest as early as possible, as much as possible and as frequently as possible in suitable investment avenues like mutual funds and stocks.
To make 1 crores in your life, you have to start your investment with monthly 5,000 to 10,000 rupees. It would make you rich and help you to fight against inflation. You start today.