Investment Tips: Even a small investment in mutual funds can give you big benefits...
Everyone has the desire to earn money. Some people want quick returns after investing and in such cases, they have to face losses many times. Whenever it comes to mutual funds, people start turning away from them saying that they will get returns in the long run. But even a small investment in mutual funds can give you huge profits after a while and you can get an amount worth crores by depositing only a few thousand rupees. This may sound strange and shocking, but a little money deposited every month can give you such a huge amount by the time of your retirement that you will be able to face all kinds of problems easily.
Actually, you get less returns on money invested in mutual funds. Due to this only long-term investment gives better returns, but this is a better option than investing money in the stock market and thinking of getting big profits through penny stocks. So let us tell you how you can become a millionaire with less investment.
Just small savings every month
If you are starting to save for the first time then start with Rs 1,000. If you get a 10 percent return in a mutual fund, then after every 12th month your amount of Rs 1000 will have to be increased by 15 percent. That means you will have to increase Rs 150 every year. In such a situation, it will become Rs 1150 in the 13th month. Similarly, every year it will have to be increased at the rate of 15 percent. If you do this continuously for 30 years, then after this a wonderful fund of about Rs 1.30 crore has been created.
There is also a catch in this if you are getting a 12 percent return in mutual funds, then you will have to increase your investment by 12 percent only annually. That means every Rs 1000 will increase by only Rs 120 every year. By doing this, a huge amount will be ready in a span of 30 years.
Helpful in future planning
This kind of savings can be very helpful for your future. Be it retirement or planning for children's higher education or marriage. Many types of needs can be easily fulfilled with the lump sum amount received from such savings after a period of time. However, before investing in mutual funds, one should not ignore the market risks.
Follow our Whatsapp Channel for latest update
