More than 90 percent of the world’s affairs is associated with money. That is why there is a saying in India. Dhanam mulam idam jagat. That means money is the driving force of the world. Everyone wants to make money. And they put efforts in this direction. But very few people can earn lots of money. The majority of the people barely earn the money to lead the life. Overcoming the daily expenses is the great victory for these people. Become a crorepati is a distant idea for them. But the fact is that anybody can become a crorepati. It needs only a planning. This planning will give more fruits if start early.
Currently, we are in the era of globalization. So there is a widespread increase in employment opportunities. Earning Rs.20,000 to Rs 50,000 is not a hectic task. Immediately after coming out of the college students are able to earn Rs.30000 per month. Some people may earn Rs.50000 and more. Of course, if the students get good marks, then only he/she can earn this much money . So parents have planned for their son/daughter’s career. If they study well from the school to college, then it will become easier to get a good job. Do not join your children in the worthless colleges which are maintaining poor standards. If you do so, it is only a time waste affair. If you select right college, you will get campus placement for you children. So that you children do not waste their time for searching the job.
Now let us come to the point. By the time degree completed student age is about 21-years. Soon after completing the degree, if he/she get a job and earning 30 thousand per month. Out of this put Rs.20000 per saving in a fund which can give a minimum of 12 percent rate of return. If he/she continue this per 15 years, the amount will be more than one crore.
12 percent of the above mentioned for the sake of the future. HDFC Balanced Fund, see below, is an amazing fund. It delivered wonderful returns in the long term. To understand the returns of this fund, we need to go back to 15 years. That means 2001. Since then if you had invested 20000 per month, the total amount will be Rs.1.5 crores.
If you think that investing in a single fund is risky, distribute the amount in 4 funds. If you are risk aversed, select only balanced mutual funds. If you are ready to take little bit risk select diversified equity mutual funds.
Nowadays both husband and wife are doing jobs. They are earning Rs.40000 to 2 lakhs. It won’t be a difficult thing to save Rs 20 thousand a month. If you are able to extend the 15-year limit to 30 years you will get Rs.7.1 crores with conditions of monthly 20000 SIP and rate of return should be 12 per cent. If you extend the tenure to 35 years, the total amount will be Rs 13 crore.
Saving money every month is not an easy task. Many people think that now utilize the SIP money and will save it in the future. If you have this type of attitude it is very difficult to achieve the target. You must have a discipline, then only systematic investment plan(SIP) will work out. Exception: emergency situation.