Thursday, October 1, 2009

1 Crore After 20 Years

I want 1 Crore after 20 years, So How much Should I have to Invest Today?

Let us today discuss that, how to decide the investment amount for the long term financial goals? In our example, the reader wants a corpus of Rs.1 Crore after 20 years. So How much he should invest every year to build a corpus of 1 Crore after 20 Years?

I have run the compound interest on the spreadsheet. And according to the compound interest calculator, if you want to build a corpus of 1 Crore after 20 years than you should invest Rs.50,000 per year for 20 years at the rate of 20% per Annum return.

Now, Indian Equity has given 15-20% Compounded annual return in the long run. So what you can do is, you can start regular SIP in 2-3 Equity Diversified Mutual Funds. And Invest at least 50,000 per annum. After 20 years, it will definitely be worth of Rs.1 Crore or even more.

Now let us assume the conservative rate of return. If we consider the return from Indian Equity 15% compounded annually in the long run than according to the compound interest calculator, than you have to invest Rs.85,000 per year in equity for 20 years.

In conclusion, if you want to build the corpus of 1 Crore after 20 years than you should regularly invest Rs.50,000-85,000 per year in the Indian Stock Market assuming that the rate of return from Indian Equity is 15-20% Compounded Annually…!!!

So Start Investing Now…!!!

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