Here’s how you can become a crorepati using the SIP route

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Ravi Teja is an employee in a renowned IT services and consulting company and earns around Rs 50,000/month. He wants to achieve his dream of building a corpus of Rs 1 crore in the shortest possible time.

So, how long will it take him to reach his goal if he decides to invest in equity-based mutual funds?

Here are the pre-requisites:

— Ravi would invest per month in mutual funds through SIPs

— We are assuming that Ravi would invest for long term

— The investment would be in an open-ended mutual fund

Stratified random sampling method has been used to calculate the arithmetic mean of mutual funds.

(Note: As we are calculating for the long term, we are considering only last 5-year returns)

Investing in equity-based mutual funds for short or very short term can be risky as they are linked to stock market movements, which can be volatile in nature.

As you can see, by investing in mutual funds, Teja will be able to realise his dream in nearly 20 years by investing just Rs 10,000 every month.