Is is possible for a common man to become crorepati in India? Honestly speaking its not easy. But is there a way out?
Generally we associate only big movie starts, politicians, cricketers & businessmen with the word crorepati.
But the question here is, can a common man like you and me become crorepati?
I know lot of people in India can dream of earning a 6 figure paycheck each month. Leave alone the concept of becoming a crorepati.
Statistics say that less than 0.2% of the population of India has assets close to one crore.
In a country with so scarce salary payout, becoming crorepati it is not like ‘asking too much’ from self?
I know this comment carries lot of pessimism, but this article has been written just to highlight this farce belief.
There is a way out, we can become crorepati if we decide to follow this dreaded path.
Do not worry, I am not asking you to go and rob a bank.
Instead, this feat of becoming a crorepati can be achieved by simply saving a investing your hard earned money. How?
If this was so simple, whey everyone else in this world is not doing it? Yes, this is the problem.
In fact the solution is so simple that people ignore it in first place.
Lets see the steps that which can help us become crorepati in India?
Step#1. How to become crorepati – Start a SIP
Start a SIP in a good diversified equity mutual funds. Start with a humble sum of Rs.6,000 for the first 12 months.
Means, in the first year, your monthly contribution to SIP will be Rs.6000 x 12 months = Rs.72,000.
Step#2. How to become crorepati – Increase SIP by 14%
After the completion of the 12th month, increase the monthly SIP contribution by 14%.
Make sure that the SIP contribution is made in a good diversified equity mutual fund.
Means, if in the first year the contribution was Rs.6,000 per month, the contribution in the 13th month will become Rs.6,840
Continue investing Rs.6,840 till the end of 24th month.
Step#3. How to become crorepati – Increase SIP further by 14%
After the completion of the 24th month, increase the monthly SIP contribution by another 14%.
Make sure that the SIP contribution is made again in a good diversified equity mutual fund.
Means, if in the second year the contribution was Rs.6,840 per month, the contribution in the 25th month will become Rs.7,789
Continue investing Rs.7,7789 till the end of 24th month.
Step#4. How to become crorepati – Keep increase your SIP contribution by 14%
Yes the trick is this, do not let your SIP stagnate. Keep fueling extra each year. Increase SIP contribution by 14% each coming year.
Continue this for next 16 years. You will be surprised to note that how easily you will be to become crorepati in this way.
As in the table indicated above, the corpus will not grow as steadily. There will be several ups-and-downs in the course of 16 years.
But if you stay invested as stated, a returns of close to 15% is almost certain.
There is no doubt that this simple exercise can enable even a common man become crorepati in India.