How to become rich is the most common question that most people want to know. Well, we show you how to crack this code. Tax and investment experts reveal how to become a millionaire and that too without much risk. They reveal that people should invest their money, in small amounts, in mutual funds SIP (Systematic Investment Plan). In this mode of mutual fund investment, they can continue to invest for the long-term say, 20 years or more and generate whopping amounts.
According to Kshitiz Mahajan, Co-founder at Complete Circle Consultants, one can become a millionaire by doing mutual fund SIP for long-term. Mahajan was of the opinion that SIP don’t need a lump sum amount and hence it becomes easier for an investor to do investment from monthly savings, even when he or she doesn’t have a huge lump sum amount for one-time investment.
According to Kshitiz Mahajan, Co-founder at Complete Circle Consultants, one can become a millionaire by doing mutual fund SIP for long-term. Mahajan was of the opinion that SIP don’t need a lump sum amount and hence it becomes easier for an investor to do investment from monthly savings, even when he or she doesn’t have a huge lump sum amount for one-time investment.
Mahajan said that if an investor invests Rs 20,000 monthly in mutual fund SIP, then after 20 years of disciplined investment he or she will be able to generate more than Rs 2 crore. However, choosing right fund will be important.
To make the fund selection easier, Kshitiz Mahajan recommended diversified portfolio with 5-6 funds only. He recommended Mirae Asset Largecap Fund and Axis Bluechip Fund in large-cap mutual fund segment, HDFC Gold Fund in gold fund segment and Invesco Multicap Fund in multi-cap segment. Apart from this, he recommended Tata funds in large and mid-cap segment.
“If an investor invests Rs 4,000 each in these five funds for the next 20 years, he or she will be able to get Rs 2 crore as maturity amount at the end of the investment period,” said Mahajan.
