By saving just Rs 170, you can become the owner of Rs 1 crore, know this investment formula

Mr journalist news, New Delhi: But it is also important to understand where to invest and get good returns. You can create a good fund by doing proper planning and investing at the right time.

If you save only Rs 5000 a month and invest it in PPF, fixed deposit or mutual funds, then you can create a fund of up to Rs 1 crore. Let us understand how investing at the right time can give you big funds.  

Keep these things in mind before investing

Before talking about investment, it is important that you properly understand the risk-related aspects of investment. You can avoid risk by keeping some things in mind while investing.

For example, if you are buying shares of a company, then do not buy after seeing the high returns of the company. There is more risk in the short term, so it is better to invest in the long term.  

Never invest all your money in one type of investment. Instead of just investing in shares, consider different investment options. To get good returns, it is important that you start investing early. The sooner you start investing, the stronger the returns will be. 

Invest in FD or mutual fund  

You can choose any medium of investment. If you are 20 years old and invest Rs 5000 per month in any PPF, mutual fund or FD, then you can create a fund of up to Rs 1 crore.  

If you invest Rs 5000 i.e. Rs 60000 per year or Rs 6 lakh for 10 years in FD, then at 6.5 percent interest rate, you will get funds of Rs 11,26,282 on maturity.

If you keep this amount as FD for the next 10 years and for 40 years, you will create a fund of more than Rs 5,100 crore.

You will have to make this investment every 10 years. Whereas if you invest in mutual fund which is the most popular method of investment, then you can generate the maximum fund. 

Strong returns in SIP

By investing in long term through SIP, you can create a huge fund by investing Rs 5,000 every month. If you invest Rs 5 thousand every month, you will invest Rs 6 lakh in 10 years.

You will get a return of up to Rs 13.9 lakh on ten year maturity and up to Rs 15.5 crore on an investment of Rs 24 lakh in 40 years.