How Rs 100 a Day Can Make You a Crorepati with Mutual Funds!

In our busy lives, saving and investing for the future often seems overwhelming. But what if I told you that saving just Rs 100 a day could help you become a crorepati? Let's see how small, regular savings and the magic of compounding can make this happen through mutual fund investments.

At first, Rs 100 a day might not seem like a lot. It’s easy to think it won’t add up to much. But just like small drops form an ocean, small savings build up over time into something big.

Here’s how it works: Saving Rs 100 a day adds up to Rs 36,500 a year, or about Rs 3,041 a month.

Using the 50-30-20 rule is a simple way to manage your money. According to this rule:

50% of your income goes to essentials like housing, groceries, and healthcare.

30% is for things you enjoy, like eating out, travel, and hobbies.

20% is for savings, including emergency funds, retirement savings, and investments.

If you earn Rs 15,500 a month, you can easily put Rs 3,041 a month towards building your Rs 1 crore goal. This fits the rule of saving at least 20% of your income. Let’s see what happens when you invest this amount in mutual funds through a Systematic Investment Plan (SIP), assuming a 12% annual return.

In 15 years: You could have Rs 15,34,416 with a total investment of Rs 5,47,380.

In 20 years: Your investment could grow to Rs 30,38,409 with a total investment of Rs 7,29,840.

In 25 years: Your investment might reach Rs 57,70,708 with an investment of Rs 9,12,300.

In 30 years: Your investment of Rs 10,94,760 could turn into Rs 1,07,34,468.

Starting early is key. If you begin investing at 25, you can have over Rs 1 crore by 55. Even if you’re 30, starting now could help you reach your retirement goal of Rs 1 crore by 60.

In conclusion, small savings can grow into a significant amount over time. By investing through SIPs and staying committed, you can build a secure future with just Rs 100 a day. Stocks might offer high returns but come with more risk. Mutual funds are simpler and offer a steady approach to investing.

Now, you can choose between Small-Cap, Mid-Cap, Large-Cap funds, or index funds based on your risk tolerance and financial goals.

Disclaimer: This article is for information only and not investment advice.