[Sure shot] How to Earn 1 Crore by Investing Rs 500 only !!!

It's really true; you can earn 1 crore or even 2 crore by investing just Rs 500, so read this article carefully as your attitude to becoming a Crorepati is going will be changed. 
Please note; this article is suitable for young investors who want to plan their retirement, if you are above 40 years please do not go through this article and better to refer to my previous posts;

• '6 Reasons Why you need 'Term Insurance Plan'. 
• How to be a Millionaire by Investing in Stock Market?

How to Earn 1 Crore by Investing Rs 500 only 

The whole story of being crorepati based on disciplined investment policy. Here we will not show you any magic to scratch a coupon and earn 1 crore within a moment but this is purely based on scientific calculation showing you the power of compounding in stock market investment through SIP (Systematic Investment Plan).

Prima facie to earn Rs 1 Crore by investing just Rs 500, appears to be impossible but you can really earn 1 Crore Rupees (or even 2 Cr and more) if you are ready to spare Rs.500 a month for the sake of your investment/retirement benefit.

I hope investing Rs 500 a month will not create any financial burden on your budget. Moreover, Rs.500 is just a peanut now a days specially for a person who google on the topic "How to earn Rs 1 Crore by investing Rs 500". 

No matter what's your financial background is; either you are from a middle class family, government employee, having job with a private company or just a student, you must be in a position to spare at least Rs.500 per month, isn't it? 

So, earning Rs 1 Crore by investing Rs 500 requires your patience only. All you need to do is simply invest smarty and forget for the time being. I hope you can do it easily after reading this article till end, specially when it comes Rs.500 a month, right? If you are agree, this article will certainly help you to clear the entire picture for becoming 'Crorepati'.

Important point to note;

How to turn Rs 500 into Rs 1 Crore? One sure way to becoming a 'Crorepati'. To spare at least Rs.500 per month. Power of compounding in SIP.  Becoming ‘Crorepati' requires your patience.

Well, to earn Rs 1 Crore by investing Rs 500 per month you must have sufficient time say 30 to 35 years to grow your investment. We have made a calculation here as to create an investment of Rs 1 Crore or more by investing Rs 500 per month (calculations have been made by using IIFL SIP Returns Calculator);

Way to Earn Rs 1 Crore by investing Rs 500

Monthly Investment Amount  :      (Rs.)  500

Investment Period In Years     :                  35
Returns Expected (% Annualised)  :   16.10%

Result
End Value of your Investments :  Rs. 10,150,287 (1.02Cr.)
Amount actually paid                :      Rs.  210,000
Times amount gets rolled-over  :             35

In above calculation what we see is; if you invest Rs. 500/- per month for a period of 35 years in an investment which fetches a minimum CAGR of 16.10%, your total investment of Rs. 2,10,000 is multiplied by 35 times over a period of 35 years and hence you will get Rs. 10,150,287 (1.02 Cr.).

Way to earn more than Rs 2 Crore by investing Rs 500

Monthly Investment Amount :       Rs.500
Investment Period In Years:              38
Returns Expected (% Annualised) : 17%
Result;
End Value of your Investments    : Rs. 21,825,061(2.18 Cr.)
Amount actually paid                   : Rs. 228,000
Times amount gets rolled-over     :         65

Again in above calculation what we see is; if you invest Rs. 500/- per month for a period of 38 years in an investment which fetches a minimum CAGR of 17% , your total investment of Rs. 2,28,000 will be multiplied by 65 times and hence he will get Rs. 21,825,061 (2.18 Cr.). 

How to invest to Earn crores?

Of course you should invest in stock market to achieve your target because other investment cannot fetch as much as return required to you be a crorepati. Again if you are not an expert in how to to invest directly in equity market, you should go for investment SIP in of selected stocks, ETFs or in Mutual funds having fabulous track record of a minimum compounded return of 17%.

How many years do you need to invest to earn Rs 1 Crore and more?

As per above calculation to earn Rs. 1 Crore, you should invest Rs. 500 a month in selective SIPs, Stocks, ETFs or Mutual funds systematically over an average period of 35 years which fetch at least 16.10% CAGR on your investment. 

Similarly to earn Rs. 2 Crore a monthly investment of Rs. 500 over a period of 38 years which fetch at least 17% CAGR on your investment. Find Top 10 Mutual Funds in India (Crisil No.1 Ranked) in my previous post.

Where to invest?

The best option to achieve your target is stock market where you should directly invest in quality large cap stocks having good potential, if you are master in finding value picks its an easy task for you. Again if you are not an expert in investing directly in stocks/shares do not worry you may invest in ETF like NIFTY ETF etc; where you have to make no effort to examine growth potential of the companies as your investment will grow each time nifty/index will rise. Investing in nifty index is supposed to be safer as your money will be invested in top 50 companies of India. If you are still worried and find it difficult to invest directly then you should invest through mutual funds where fund managers who are professionally expert in investment will do every sort of investment work for you.

Is it possible to get more than 16% CAGR on your investment?

yeah it is quiet possible to get 16-17% or even more return when you invest in stock market. If you see track record of Sensex for past 30 years, you will be surprised to know that it has delivered a return of 17% CAGR and expected to deliver 26% CAGR in coming 20 years. It means if you do nothing but invest in INDEX only, you can easily earn Rs 1 Crore by investing Rs 500 in 35 years and more than Rs 2 Crore in 38 years.

Essential Components in SIP Investments

Systematic Investment Plans, known as SIPs, are a dependable way for creating wealth over long term. Here's few essential elements you must consider when invest in SIPs.

1. Consistency's Key

The keyword be "systematic". Need to invest consistent, regardless of market condition, to take advantage of rupee cost averaging. Even small investment can yield big return over time, thanks to power of compounding.

2. Choosing the Right Fund

Research and select funds that consistently performed well over years. Remember, past performance do not guarantee future results, but it's a good place to starting.

3. Regular Monitor

While SIP is a long-term investment strategy, regular monitoring essential to make sure your investments are on right track. It also help stay updated with market trend and fund performance.

Case Study: Becoming a Crorepati with SIPs

Invest in stock market can seem daunting, but with right strategy and disciplined approach, it's entirely possible become a crorepati.

Meet Ravi, a typical middle-class individual, who start investing Rs.500 monthly in SIPs from the age of 25. By the time he retired at the age of 60, his disciplined and consistent investment had grown to more than 1 crore, thanks to the power of compounding.

You too can replicate Ravi's success. Remember, the earlier you start invest, the better your chances of achieve your financial goals.

Conclusion

While it may seem like daunting task to earn crores from SIPs, it's definitely achievable with consistent investments and a little bit of patience. Start investing today and let your money work for you!

Popular searches related to SIP investment:

Best SIP to invest for 10 years

SIP return calculator

How much should I invest in SIP monthly?

Best Mutual funds for SIP

SIP investment tips and strategies

How to start investing in SIPs?

Remember, key to earning crores from SIP investments is consistency and patience. The earlier you start, the more you earn. So, what are you waiting for? Start your journey to becoming a crorepati today!

"If you have any query on the current article please free to contact us by just dropping you message here, I will soon be in your touch."

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How to earn crores in SIP investment? Earn 1 crore online, how to earn crores in short time, how to earn crores in a day, Earn crores in share market, How to earn 5 crore in one month, How to earn 1 crore in 5 years? How to earn 1 crore in 10 years.

     

7 Ways to Get Monthly Income after You Turn 60

What would you do when you turn 60 and they declare you officially as a senior citizen? Of course, your first concern will be your financial security. This is crucial because when you retire you are cut of from regular sources of income. Therefore, it is important you have a plan to survive the winter of your life in peace and happiness To tide over the loss of income you need to substantiate it with other sources of income. The government offers many options for us to invest and get regular monthly incomes. Many of us are still unaware of these products:

Senior Citizen Saving Scheme: This is a saving scheme started by the government of India designed specifically for senior citizens. The age limit is 60 years and 55 years for those who have retired by other methods. It gives a 9% interest rate per annum computed quarterly. The maturity period is 5 years and can be extended by 3 years. The interest is fully taxable but there is no tax deduction at the source.

Reverse Mortgage: This is a relatively new option announced in 2007 specifically targeted for senior citizens to receive a regular amount of income. Reverse mortgage works by pledging your house with the bank. The bank pays you a fixed amount of money for the house. Once you have moved out or in case of death, the bank gives an option to your heirs to close the loan. If not, the bank can sell the house and recover their loan amount and interest there of. The rest is given to your heirs.

Only people who have reached 60 years can opt for this option. If the co-applicant is your wife, she must be of 58 years. This age bars makes this specifically suited for senior citizens. The payment is credited to your account monthly or quarterly or in one go. Reverse mortgages are not taxed as it is considered as a loan and not as income.

Some of the banks that provide Reverse Mortgage in India now are State Bank of India, Central Bank of India, Union Bank of India, Bank of Baroda, LIC Housing Finance, Punjab National Bank, Canara Bank etc. Reverse mortgage is not popular at the moment because people are yet to take note of it. Till now only 7000 reverse-mortgages have been sold.

Also read: How to Become Financially Independent | 3 Steps

Immediate Annuity: Opting for an immediate annuity is another option when we are retired. It is a fixed income generating scheme, in which we pay a lump sum as single premium with the insurance agent and then receive a steady flow of income periodically. The payment amount and the annuity depend on your age and the product you choose.

You will receive annuity or the income from the next year of paying premium and it will be paid to you as long as you are alive. The annuity received increases with every year. There is an option for annuity to extend till the death of the spouse as well. Immediate Annuities are a good monthly income plan after retirement because it is secure and definite.

Nonetheless, in life long annuity plans sometimes the principal is not recovered because of immediate death of the individual. It is advisable to go for fixed tenure plans if you want to recover your principal. A popular annuity plan is LIC’s Jeevan Anand.

Senior Citizen Fixed Deposits: The most common and convenient method a senior citizen can receive a monthly income is by investing in senior citizen fixed deposits. At present, banks provide interest rate up to 9%. They can invest also in corporate fixed deposits, but they are riskier than bank deposits. Banks also provide monthly income plans. These are tax free at source. But, the interests are taxed.

Post Office Monthly Income Scheme: The Indian Post office department provides some secured investment plans which provide a monthly income for those investing in it. The rate of interest is 8.2% with a maturity period of 5 years. However, there is a ceiling on investment of Rs. 4.5 lakhs for an individual. Jointly an amount of Rs. 9 lakhs can be invested. Though, the tax is not deducted at the source, the returns are taxed.

Mutual Funds: Just like post offices, mutual funds also provide monthly income schemes to individuals. Senior citizens can also invest in these funds to get a monthly payment. However, these funds carry with it an element of risk because these are invested in equity markets. Therefore, you must be extra cautious when you invest in these funds. One can earn crores by investing in mutual funds.

To Know the magic of compounding in SIP must watch this video;

Also read: How to be millionaire in stock market?

Triple A Rated Bonds: Would your retired life be peaceful if you stay awake all night thinking about a risky investment? Definitely, it would be an awful way to spend your post retirement life. At that age what you need is a steady flow of income that is very low on risk. Triple A rated bonds are a good choice. Triple A is a rating given by the government, which means that the bond is highly secure and safe. The returns are pretty good with corporate AAA bonds fetching about 9.70%. Having an assured and pre-determined income enables you to plan ahead for future expenses.

Getting old is not such a bad thing. After a life’s hard work you really need some time to rest and be at peace with yourself. Only at old age could you actually get the time and opportunity to find that inner peace and happiness. This happiness lies in the fact how you prepare yourself before you grow old. The most important thing that we must consider is the options that can bring monthly income so that all of our expenses are easily met.