Convert your Rs.5000 to Crores of Rupees
The moment we start our job we plan to save something and we gear up to invest in the financial instruments. Similarly, a homemaker cut down expenses to save some money for future. Now, the problem is whether you are into job or a homemaker, both make mistakes while investing and that is why we end up with no or low money.
But don’t worry we are here to give you some eye opener tips to grow your money
We are taking here three popular investment instruments which are used by the investors. Let’s see how I work and which instrument can help to make you Crorepati.
As we said earlier, we will see the journey from Rs.5000 to crore. So, let’s say we are investing Rs.5000/- every month in FD, PPF and Mutual Funds then how my portfolio will look like:
| Type | ROI | 10 years | 20 years | 30 years | 40 years |
| FD | 6% | ₹ 8,28,046.76 | ₹ 23,49,657.04 | ₹ 51,45,752.55 | ₹ 1,02,83,829.12 |
| PPF (EEE) | 7.10% | ₹ 8,75,351.73 | ₹ 26,52,088.39 | ₹ 62,58,402.29 | ₹ 1,35,78,282.79 |
| Mutual Funds | 15% | ₹ 13,93,286.36 | ₹ 75,79,774.87 | ₹ 3,50,49,103.03 | ₹ 15,70,18,777.29 |
| Total Amt Invested | 6,00,000 | 12,00,000 | 18,00,000 | 24,00,000 |
So, from the above table you can see that :
- In FD : I have put Rs.6lakhs for 10 years and I shall get Rs. 8.3 lakhs on maturity and at 40 years I will get 1.02 Cr on the investment of Rs.24 lakhs.
- In PPF : I have put Rs.6lakhs for 10 years and I shall get Rs. 8.75 lakhs on maturity and at 40 years I will get 1.35 Cr on the investment of Rs.24 lakhs. But remember the complete amount is Exempted from tax. It is popularly known as EEE investment i.e. Exempted! Exempted! Exempted!
- In Mutual Funds : I have put Rs.6lakhs for 10 years and I shall get Rs. 13.9 lakhs on maturity and at 40 years I will get 15.7 Cr on the investment of Rs.24 lakhs. Which is a huge amount
- If you see deeply the Mutual funds take a great hike post 10 years
- We can also see the power of compounding. If we invest early we can get huge returns on our investments
- This also shows that FD should be kept as an emergency funds or for short term goals whereas Mutual funds to be chosen for long term goals
- PPF are good investment as it gives somewhat better returns than FD. Apart from this the power of PPF is its EEE nature. PPF is one investment vehicle that falls under the Exempt-Exempt-Exempt (EEE) category. This, in other words, means that all deposits made in the PPF are deductible under Section 80C of the Income Tax Act. Furthermore, the accumulated amount and interest is also exempt from tax at the time of withdrawal.
Writer : Dr. Mamta Godiyal
Please Note : Investment strategies can vary from one person to another and one goal to another depending on their financial situations, objectives, and risk tolerance. These are author’s own views. Readers are requested to do thorough research before investing as investment is subject to owner’s risk.)