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Can I Start With Rs 5 Lakh and Reach Rs 1 Crore in 10 Years - Scripbox
Can I Start With Rs 5 Lakh and Reach Rs 1 Crore in 10 Years - Scripbox
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https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct...
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Start here.
investing an initial amount of Rs 5 Lakh through mutual funds. With India booming
and great scope for foreign investments ahead in the coming years, I would
assume an average annual returns of 25% or more in mutual funds.
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct...
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If not, please let me know the capital amount needed to achieve my target
considering the current economic scenario and performance of the index.
A: You can reach your target, but your plan requires some modification.
First of all, we believe that the correct expectation for long term return in equity funds
is 14-16% per annum. Markets can be volatile in the short term and thus reliably correct
returns tend to be in the 14-16% range rather than a best case range of 25% or more.
Good actively managed equity funds tend to do better, on average, than the index.
Having understood returns, you should look at more likely scenarios rather than best
case scenarios to reach financial goals with greater confidence.
To achieve Rs 1 Crore in 10 years, you will have to start with more than Rs 5 Lakh,
approximately Rs 27 Lakh. Alternatively, start with the money you have and invest
more money every year.
#2. Start investing an additional Rs 20,000 every month so you invest a total of Rs 2.4
Lakh at the end of the first year.
#3. Increase the amount you save by 15% every year, so the investment amount
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct...
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changes to Rs 23,000 per month from the second year. This investment figure keeps
on going up for the rest of the duration. You are also likely to receive an increment
each year which can help you raise your investment capital each year.
The end result should be the same as starting with a higher capital amount of Rs 27
Lakh. Assuming that fund returns are in the 14-16 % range, you should be able to
reach your goal of Rs 1 Crore by the end of 10 years.
Here is a calculator where you can check how much you need to invest in 10 years to
reach a particular corpus. You only need to add, in the relevant cells, your initial
investment, your monthly investment figure, and by what percentage you intend to
increase your monthly investment each year.
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a month ago
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a month ago
You have to be a real pessimist, ever heard of a term job change? The article is realistic, there is
no magic wand to make you crorepati while you sit relaxing in your chair shitting on the world.
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct...
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07/11/2015
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a month ago
Pessimist??? Open your eyes and see the reality... All the break-up has been given...
Kindly throw some light on your stupid calculation about how to save 7.4 lakhs out of 10
lakh salary in a year... Then think about next year...
Not everyone is dumb enough to switch their jobs every year...
And by the way... Sitting in chair and relaxing will save you more rather than going out and
spending money...
2
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a month ago
There is no way the person in question can save 20,000 every month and invest
etc. Amit Sarkar is right on this. (unless hes in tier 4 city etc).
But the bigger points...1 crore after 10 years is a paltry amount. You can't even
arrange a party with 1 crore , 10 years hence. Thats gotto be the major worry.
1
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a month ago
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a month ago
5 lakh is lumpsum one time investment.............while 2.4 lakh per annum is sum total of monthly
SIP...............THAT SHOULD BE MANAGEABLE................
Reply Share
a month ago
he mentions that he saves 3 lakhs per year whether ALL of it should go to equity mutual
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct...
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07/11/2015
Himansu S M
Reply Share
3 months ago
The answer is misleading - The question was can 5 L grow into 1 Cr in ten years? The answer is NO
because it requires 35% return annually compounded. No MF has given that return continuously for 10
yrs. Instead of that the answer suggests to increase it successively to achieve the target. Yes 27 L can
grow into 1 Cr in ten yrs if the return is 14% continuously for 10 yrs. It is possible. The bottom line is that
the answer is incorrect for the given question. Thanks!
1
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7 days ago
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scripboxblog
Hi Himansu,
Here is an excel calculator you can use to calculate returns after 10 years, depending on initial
starting amount and monthly investments - http://bit.ly/investment-retur...
Reply Share
7 days ago
scripbox blog, please be honest and sincere in anwering to reatain the credibility, if yes
give answer like that if no give answer like that by giving much more than that you only
rendering dis-service, my feelings, left to you
scripboxblog
Reply Share
While you're right, the objective of this blog is to provide our readers with a practical approach to
wealth creation.
Our answer therefore addresses the intent behind the question. The goal is to achieve Rs 1 Cr
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct...
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07/11/2015
Our answer therefore addresses the intent behind the question. The goal is to achieve Rs 1 Cr
and if you cannot achieve it simply by investing Rs 5 Lakhs one time, then we must find out how
we can get there. The assumptions we make are all reasonable for the asset class (equity) and
for someone who will be earning for that 10 year period.
Reply Share
7 days ago
in this answer under response the assumptions are really senseless, baseless, you can
always resort to justifying
ekamber
Reply Share
7 days ago
crude joke in the form of an answer, expecting a person to incrtease his investment by more than 400%
to achieve the target is just making mockery of the person, not in the right spirit
srikar
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9 days ago
i think done a tiffin,biryani bussines.... in 5 to 6 areas so with in a 3years we get upto 80 lakhs...
Reply Share
WinNew
9 days ago
It would be nice to know how many funds have achieved this 14-15% returns, even on a long term basis,
and how many did not. Most MF Managers, just dump your money into the market when they have your
money, irrespective of valuations. And the reverse, on redemptions.
Reply Share
Prigafinalyst
10 days ago
Considering the above salary and saving figures, the amount in 10 years
cannot be achieved any more than 45 Lacs. Consider Initial one time
investment of 2.5 lacs (some from previous savings), monthly investment
Rs. 10,000 (max that can be invested as per current expenses and
savings) and increase in investment per year cannot be more than 10%
https://scripbox.com/blog/can-i-start-with-rs-5-lakh-and-reach-1-crore-in-10-years/?utm_source=times-internet&utm_medium=content-distribution&utm_content=too-late-to-invest-retirement&utm_campaign=content-marketing&ct...
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07/11/2015
(As per expected salary rise and inflation in upcoming years). This will
be 45 lacs in 10 years at 14% returns.
What are the risks, taxes on maturity, mid term exit charges or impact etc.. ?
Prince
Reply Share
10 days ago
Good class room lesson. Uncertainty is a part of life and money game. There is nothing wrong in planning
for cash bonanza but some where a simple plan for minimum fall back should be there. Every one should
plan for good future.
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D V Khatri
16 days ago
Hi, my suggestion is to leave this job and earn some good degree from any good foreign insitutions. Then
you will earn more and save more. Ten lacs in a year is very tiny amount, now a days " best of luck".
Reply Share
Chandan
17 days ago
There is no magic in the SIP as well. I have experience I got the same amount invested in 3 years. There
are other deductions every month.
Reply Share
aditya mohata
a month ago
like the return on CEAT TYRES rs 90 stock 1300 force motor rs600 to 3000 eicher 2500 to 22000 and
many more
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aditya mohata
a month ago
it is better to invest in stocks regularly and then hedge it and one can make easily 20-30% on investment
and in 5-10 yrs it can deliver 6-8 times return too
Reply Share
Tridip Sarma
a month ago
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07/11/2015
Tridip Sarma
a month ago
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7 days ago
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Mutual Fund investments are subject to market risks, read all scheme related
documents carefully. Past performance is not an indicator of future returns.
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