How to become rich! Invest Rs 95 per day and become a crorepati

Mutual Fund SIP (Systematic Investment Plan) is one of the most preferred choices among investors who believe in equity-linked investments. As per the investment experts, a mutual fund SIP would give better return if it is done for long term i.e. more than 10 years or even for thirty years if the investment has been started at the early phase of one's professional career. Experts' opinions suggest that for a mutual fund SIP, returns on 10-15 years continuous investment is around 12 to 14 per cent while for investments above 30 years it can be in the range of 14 to 16 per cent, maybe 17 per cent — depending upon the market performance in the last four-five years of the investment.

Mutual funds, especially SIP (Systematic Investment Plan) is highly popular among the Indian millennials and one of the most preferred choices among the small and medium-size investors. According to tax and investment experts, long-term investment in mutual funds, especially SIP gives smart returns to an investor. As per the mutual fund SIP experts, a long-term investment would give a minimum of 12 per cent post-tax returns but for them, long-term means a period beyond 15 years. They are of the opinion that 12 per cent is the most conservative number which they are giving. the number can be around 15 per cent as well but 12 per cent post-tax returns can be taken as an assured return on their long-term mutual fund SIP investment.

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Speaking on the mutual fund SIP returns Jitendra Solanki, a SEBI registered investment expert said, "If a mutual fund investment is done for long-term means more than 10 or even 15 years, one can expect a return to the tune of 12 per cent to 14 per cent post-tax payments. However, if an investor has started investing at an early phase of his or her professional career, it is advisable for them to continue investing for as long as they can. A mutual fund SIP of 30 or more than 30 years is more advisable for such investors." 

Asked about the return one can expect from a mutual fund SIP investment for up to 30 years Kartik Jhaveri, Director — Wealth Management at Transcent Consultants told Zee Business Online, "For mutual fund SIP investment up to 30 years, one can expect a return to the tune of around 14 per cent to 16 per cent and maybe 17 per cent if the market performs well in last four to five years of investment." However, he maintained that 12 per cent post-tax returns can be taken as an assured post-tax return on mutual funds SIP for around 30 years of investment without any interruption.

So, taking the opinion of both investment experts if an investor invests Rs 2,833 per month or around Rs 95 per day for 30 years, one's net investment would be Rs 10,19,880 and taking bottom level post-tax interest rate of 12 per cent the SBI mutual fund SIP calculator suggests that an investor would get at least Rs 1,00,00,245 as maturity amount on his or her investment.

Source: SBI Mutual Fund SIP Calculator

Hence, an investor can become a crorepati by investing around Rs 2,833 per month or around Rs 95 per day (Rs 94.433 in actual) in mutual fund SIP for 30 years.