How to become Crorepati by investing Rs 1,200 per month in mutual funds?
Many individuals would dream to become Crorepati. However, only few would plan and achieve. While there are several investment options like stocks, company FD schemes, NCD’s, Bank FD schemes, all these are either high risk options or provide low returns. However, mutual funds on other hand can help you to grow your small investments into Lakhs and Crores. Do you know that small investment of Rs 1,200 per month can make you Crorepati? You DONT need lakhs of rupees of investment to be done to make it Crorepati. It just requires small savings, plan well and invest wisely. In this article, I would provide details about how to invest in mutual funds to become Crorepati with such small investments. I would also recommend top mutual funds where one can consider to reach this goal.
How people dream to become Crorepati?
Crorepati = 100 Lakhs. Many of us first start earning money, do small savings and then try to make several lakhs and then become Crorepati. However, several investors struggle looking for various investment options. Some invest in stocks and burn their fingers. Some invest in company FD schemes and complain that their capital is not returned by companies. End of the story, they lose money. Investors can plan well and invest in right investment option where they need not worry with day to day stock market fluctuations. One of the efficient ways to become Crorepati is investing in mutual funds which would reduce all such day to day risks.
Also Read: Top 15 Killer Mutual Funds to invest in India now
Why Mutual funds?
Mutual fund schemes pool money from investors and invest in stocks. Fund manager takes decisions about investing in particular stocks. Some mutual fund schemes do well and gain popularity and investors pump more money and AUM increases for such funds. Investing in a good mutual fund scheme is tough. It is also an art of identifying good schemes.
How much to invest per month in mutual funds to become Crorepati?
Mutual fund schemes provide good returns in long term. One can consider an average annualized return of 12% to compute the wealth that can get accumulated in long run if one is ready to invest money every month through SIP.
If you are at 30 years age and want to become Crorepati at 60 years age (30 years tenure), you just need Rs 1,200 per month and increasing such investment by 10% year on year. Means, first year you would invest Rs 1,200 per month and from 2nd year you would invest Rs 1,320 (1200 + 120) per month and so on.
If you are at 35 years age and want to become Crorepati at 60 years age (25 years tenure), you just need Rs 2,400 per month and increasing such investment by 10% year on year. Alternatively, if you want to become Crorepati in 25 years irrespective of your age, just invest this amount.
If you are at 40 years age and want to become Crorepati at 60 years age (20 years tenure), you just need Rs 5,000 per month and increasing such investment by 10% year on year. Alternatively, if you want to become Crorepati in 20 years irrespective of your age, just invest this amount.
If you are at 45 years age and want to become Crorepati at 60 years age (15 years tenure), you just need Rs 11,600 per month and increasing such investment by 10% year on year. Alternatively, if you want to become Crorepati in 15 years irrespective of your age, just invest this amount.
If you are at 50 years age and want to become Crorepati at 60 years age (10 years tenure), you just need Rs 30,000 per month and increasing such investment by 10% year on year. Alternatively, if you want to become Crorepati in 10 years irrespective of your age, just invest this amount.
Also Read: Best Tax Saving Mutual Funds to invest in India
How to become Crorepati by investing Rs 1,200 per month in mutual funds?
Once you identify your age or tenure of investment to become Crorepati, now you need to identify good mutual fund schemes which can take you to that goal. Ideally you can select 3-5 mutual fund schemes and invest through SIP every month. If you are investing Rs 1,200 per month through SIP, invest in 2 good schemes. If you are investing Rs 10,000, select 3-5 mutual fund schemes. Here are the schemes one can focus about.
Top#1: Birla Sun Life Frontline Equity Fund (Large cap fund)
Fund Objective: This mutual fund scheme aims to generate long term growth of investment, through a stock portfolio with a target allocation of 100% equity aiming at being as diversified across various industries and or sectors.
Fund Performance: This fund has beaten all its peers and provided 18% annualised returns in last 5 years and 13% annualized returns in last 10 years.
Why to invest: Good performance has lead to asset size hitting Rs 12,000 Crores. Stead Management has led to continuity of style and market bias. Fund performed well in bull markets and reduced losses during bear markets. This fund beats all its peers and provided 18% annualised returns in the last 5 years compared to the S&P BSE 200 benchmark of 13% in a similar period. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the best SIP mutual funds to invest for long term to become Crorepati.
Top#2: ICICI Pru Top 100 Mutual Fund (Large cap fund)
Fund Objective: This mutual fund scheme aims to generate long term capital appreciation by investing predominantly i.e. up to 95% in equities while the rest would be invested in debt and money market instruments.
Fund Performance: This fund has beaten all its peers and provided 17.2% annualised returns in last 5 years. Even in the long run for 10 years, it gave 11% annualized returns providing this as a consistent performer in the long run..
Why to invest: This fund beats all its peers and provided 17% annualised returns in the last 5 years compared to its benchmark of 16% in a similar period. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 3-Star (3 out of 5). Another good mutual fund to invest for achieving Crorepati goal.
Top#3: Franklin India Smaller Companies Fund (Midcap/small cap fund)
Fund Objective: This mutual fund aims to generate long-term capital appreciation from a portfolio of mid-cap and small-cap companies. It invests up to 75% in smaller capitalization companies.
Fund Performance: This fund has beaten its benchmark and provided 31% annualised returns in last 5 years. Even in long run of 10 years, this fund provided 15% annualized returns.
Why to invest: This fund differentiates itself from market cap orientation. This fund invests smaller portion in large cap and invests a sizeable amount in small companies, hence it can be termed as smaller stock fund. This fund performed excellent in last 5 years and given 31% annualised return compared to its benchmark of 11%. Crisil Ranks it as Rank-1 and Value Research Online as 4-Star (4 out of 5). This is one of the best small cap funds to invest for long term.
Top#4: DSP BlackRock Micro Cap Mutual Fund (Midcap/small cap fund)
Fund Objective: This mutual fund aim is to seek long-term capital appreciation by investing in a stock portfolio that are not part of the top 300 companies by market capitalization. The focus of the scheme is to deliver superior long term performance by selecting stocks of companies those are uncorrelated to broader markets & not sector specific.
Fund Performance: This fund has beaten its benchmark and provided 32% annualised returns in last 5 years.
Why to invest: This is a top small-cap fund that has beaten its benchmark for last eight years from 2008. This fund performed excellent in last 5 years and given 32% annualised return compared to its benchmark of 26%. Crisil Ranks it as Rank-1 and Value Research Online as 4-Star (4 out of 5). This is one of the top SIP mutual funds to become Crorepati in long term.
Also Read: 10 Best SIP Mutual Funds to invest in India in 2017
Top#5: ICICI Balanced Mutual Fund (Balanced Fund)
Fund Objective: The scheme invests in equities and related securities as well as fixed income and money market securities. It invests 60% minimum in equity and balance in debt related instruments.
Fund Performance: This fund has beaten its benchmark and provided 20% annualised returns in last 5 years. Even in last 10 years, this fund gave 12% annualized returns.
Why to invest: This fund performed well in last 10 years and given 12% annualised return comparing to balanced fund category of 10%. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 4-Star (4 out of 5 stars). It would reduce risk by investing part of the investment in debt instruments, hence good to have such funds for portfolio balancing. This is one of the Best SIP Mutual funds to invest in the balanced fund category to become Crorepati.
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Suresh
How to become Crorepati by investing Rs 1,200 per month in mutual funds
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Sir,
I am @40, investing in following funds monthly from last 1 year corpus is 25 lack and period is 10 years. is funds are ok? pl. suggest
ABSL pure value – 5k
absl tax relief 96 – 1k
reliance mid and small cap-1k
good funds. Stay invested
Sir, I’m a new investor to the volatile market. I’m salaried person and have decided to invest in MF’s scheme atleast 5000 per month. Please suggest me better option to invest and I’m ready to take risk. Please help me in this.
Hi Marcelino, Since you are new investor, you can invest in largecap, diversified and balanced mutual funds to start with. You can check this article for top performing funds in these categoriesy. https://myinvestmentideas.com/2018/05/top-15-best-mutual-funds-sip-to-invest-in-india-in-2018/
i will invest 1500/- monthly for 25 year which SIP is best in return and near to 50 lakh. pls suggest me.
Hi Tushar, You can invest in large cap and diverisifed funds to start with. You can refer this article about some of the top funds to invest in these categories. https://myinvestmentideas.com/2017/10/top-10-best-mutual-funds-for-sip-to-invest-in-2018/
Sir, I would to like invest 5000K, what scheme is most prefer?
You can invest in good mutual fund schemes
I want to become billionare and can invest 30k month .Please suggest me some good Mutual funds and How to diversify money betweeen these funds
N.seetharamu..80 years.
I am 80 years. I have Rs 1 lakh to invest. I need a return of Rs 1500/- per month for my expenses.. Suggest a risk free scheme if you know any. My investment to be returned to my nominee after my death.
You can Invest in HDFC Prudence Dividend Fund then you get 957 Rs. Per Month..
Which are the best funds to invest to become millionar
Hi
I m awadhesh pratap 29 yrs old i can invest 1500 rupees per month please give suggestion me
You can look in these funds. 1) Large cap – Birla SL Frontline fund / ICICI Pru focussed blue chip fund 2) Mid-cap – HDFC Mid-cap opps fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Balanced Fund / ICICI Balanced fund.
Hi
Im 21 yrs old , i can invest Rs 4000 p.m, please suggest me some good schemes with returns
Hi i m forty years old i become crorepati in the age of 60 and i can pay 1500 per month possibility mutual fund scheme for me
Hi,
I would like to invest some money in Mutual funds..
As of now no TDS detection for me, and I am 22 years old.
I can afford Rs 3000 in a month for investments.
So, please suggest me some good mutual fund schemes…
I WANT TO BECOME COREEAPATI IN 10-15 YEAR THROUGH SIP PLZ GUIDE .
You can start investing in large cap and midcap/small cap funds. Increase SIP values year on year. Invest in 5-7 mutual fund schemes. You would definitely achieve your goal in 10-15 years.
Sir this means if I’ve to become crorepati in 10 years (after doing the calculations of Rs. 30k increased by 10%every year for 10years @12% compound interest) then the total amount I need to deposit is Rs. 70738.43?.. Have I calculated correctly?
Tabish, I indicated that if you want to become Crorepati in 10 years, you need to invest Rs 30K per month for 1 year and 2nd year it would be Rs 33,000 per month and from 3rd year it would be Rs 36,300 per month etc.,
Oh k sir.. Understood now.. Thanks
Namaskar Sir, At present I am investing via SIP on different plans:
SBI Magnum Global Fund (G) 2000
SBI Magnum Midcap Fund (G) 2000
SBI Bluechip Fund (G) 2000
Franklin India Smaller Companies Fund (G) 2000
Franklin High Growth Companies (G) 1000
L&T Business Cycles (G) 1000
Can you please tell me the return after 10 years of period?
Thanks & Regards,
Kumar Vaibhav
Hi Suresh Garu,
Happy new year, I been reading your blog for past some time.
I used to invest in stocks and recently started SIP in mutual funds, I am doing 15000 sip in the following MF’s.
1.DSP Blackrock Micro cap.
2. Mirae Asset Great Consumer-Growth
3. ICICI Prudential focused bluechip equity funds.
4. ICCI Prudential Value Discovery fund-growth
5.Franklin India Smaller companies fund -growth
6. Sundaram SMILE companies fund-growth.
I am 36 years old and want to stay investing in MF’s until I get to 55 Years for my retirement, Please provide your feedback on my MF choics. Thanks
Ramesh
Dear Suresh,
I am a 21-year-old and want to invest for the following goals.
My goals are as follows:
1) As i live alone and have no one immediately, I need to be prepared for any kind of crisis and might require cash during that time.
2) Need to have decent cash for future events like marriage etc(Might be silly but it’s important right?)
3) Also since as I don’t have any property, I wish to have a house of my own by next 10 years. (i have my career in Mumbai and don’t mind suburbs as well)
I earn 22,000 per month and have steady growth every year. I can save upto 7,000 to 10,000 per month.
Please advise me to take an informed decision.
Best,
PV
Hi,
I am 37, as mentioned above, i am ready to invest 5000 for 25 years by increasing 10% every year. If so, what is the min amount you assure me at the age of 60.
Hi,
I could see lot of ideas on investing patterns. However, can some light be thrown on selling them as well ? e.g. Does a 10 year investment tenure really mean a lock-in of 10 years ? Does one need to time the sales ? What should be the criteria for selling ?
Dear Sureshji,
Hi,
I am working in Riyadh Saudi Arabia and I have 6 years remain to be retired. I want my retirement corpus Rs. 1.50 Crorers and planning to invest as below.
Birla frontline equity fund – 10,000 monthly by sip
Sbi blue chip equity fund – 10,000 monthly by sip
Quantum longtime equity fund – 10,000 by sip
Franklin India smaller cos fund – 10,000 by sip
DPS BR Micro chips fund – 10,000 by sip
Mirae emerging blue chips fund – 10,000 by sip
Plz go through & advise me the above funds are ok and is the amount 60,000 sufficient to achieved the above retirement corpus or is there any need to increase the amount to complete the corpus under the period of 6 years.
Sir wish u a Happy New year. I have been investing in SIP in the following funds :
(a) Birla sunlife Frontline equity fund- 3000/- per month
(b) Quantum long term Equity fund – 2000/- per month
(c) Franklin india smaller companies fund- 3000/ per month
(d) ICICI pru focussed bluechip equity – 2000/- per month ( my wife investment)
Let me guide sir whether my allocation is correct & can I invest further Rs 2000/- in ICICI Pru Balanced fund & debt fund such as SBI Magnum Gilt fund.
Happy new year. good funds. Stay invested Jitendra
hi..thanks for good article..I am doing a SIP of 10000/ pm in IDFC Premiere equity fund – growth from last 2 years. also i have invested lumpsum 2.5 lacs in IDFC dynamic equity fund – growth.
can u suggest me if my choice is right..or do i need to change my strategy.
Good analysis but it is high regretable that you fail to understand the risk profile of individuals. Why the schemes are good, a risk averase buying micro cap after reading this post is like shooting yourself with a gun. Good article but flawed with many other aspects also.
Hi,
Pls help with investment amount for 5 year?? And how many schem to invest
You may not get good returns if you invest for 5 years in mutual funds
Thank you Suresh. Informative article.
Happy New year to you.
Regards
GVR
Thanks chandrasekhar garu. Happy new year to you too.
Dear Suresh,
Wish you Happy New Year, I wanted to know how one can invest MFs in their child name when they are still below 10 years. How can I open an account on child name.
Best regards,
Ramesh
You can open MF account in minor name. Contact any of the MF broker
Dear Suresh,
Wishing you a happy new year. I have been an avid reader and subscriber of your posts since the past two years. Thanks for the blog it has helped me a lot. Since the past year or so, I have been investing in SIPs approx Rs. 21,000 per month and was suggested to invest in the following funds:
1. Axis Long Term Equity Fund – Regular – Growth – ELSS
2. Axis MidCap Fund – Regular – Growth
3. DSP BlackRock Money Manager Fund – Regular – Growth
4. DSP BlackRock Micro Cap Fund – Regular – Growth
5. HDFC Cash Management Fund- Treasury Advantage Plan – Retail – Growth
6. Invesco India Mid N Small Cap Fund – Regular – Growth
7. Reliance Money Manager Fund – Regular – Growth
8. Reliance Liquid Fund – Cash Plan – Regular – Growth
9. Reliance Equity Opportunities Fund – Retail – Growth
10. SBI Blue Chip Fund – Regular – Growth
11. Sundaram Select Midcap – Regular – Growth
12. Franklin India Prima Plus – Regular – Growth
13. Tata Treasury Manager Fund – Regular – Growth
Can you please let me know if I need to opt out or reduce the number of funds?
Thanks and regards,
Oz
You are investing 13 funds, however only few are good funds. Some of the funds are underperformers like Franklin India prima plus, Sundaram select midcap, invesco india smallcap fund and axis midcap fund. You can review and invest in better funds in this segment. Invest 5-7 funds which are good funds. In debt segment invest for 2-3 funds.
Informative as Always… 🙂
Hi Suresh ,
Bush you a very happy new year . Nice one and very informative .
I have been following your blog from the beginning. Very nice
But in mf only u can invest either 500, 1000, 1500 and so on. How can distribute 1200 in 2 mf.
Hi Kamlesh, It is just given as indicate number that with such lowest amount you can sill become Crorepathi.. You can invest 1,000 or Rs 1,500.
Dear Suresh ji..
Wish you a happy new year 2017.
I, want to know that, can, i invest Rs.1200 per month to become crorepathi as your formula mentioned in the article. I, want to invest on my son's name, who is only 17 yrs now. can i, inevst on his name.
kindly give us advise.
Hi Gangadhar, Happy new year to you too. Yes, you can open an account under your son name and invest such small amounts in your son name
Hi,
I am currently 34yrs and have 7 month old twin boys and want to make investmnets for their future needs, mainly education. Further, need to invest for my retirement life too. kindly advice what is the best MF I can invest in for maximum returns.
Hi Thank you for the information,
Could you please also help us with the scheme IDs that will help to locate the scemes very easyly.
Thank you.
The scheme names are already indicated. Depending in MF broker you can search with that name.
your Articles always help me decide on Mutual Funds .Thank you soo much.
Sir
1) birla sunlife froutline equityfund – 2000/- (january/2016)
2)Axis mid cap fund –1000/- (january/2016)
3)Kotak select focus fund – 1000/-(january/2016)
4)Reliance growth fund-1000/-(november/2008)
5)Hdfc mid -cap opportunities fund 1000/- (july/2015)
Now i want to start invest 1200 /- on more fund. Which fund choose to invest ???
What will be the actual value of 1,00,000 after adjusting with inflation rate ?
*1,00,00,000
Hi Sanket, If we consider 4% to 5% inflation rates per annum, the value of Rs 1 Crore would be between Rs 50 Lakhs to Rs 60 Lakhs in 30 years.
Hello Suresh Sir,
Nice article. My target is for 10years and I can invest Rs. 30000 per month. How many funds i should select ? 5 or more than 5? and how much amount in each fund?
Can I invest in Mirae Asset Emerging fund as well?
Thanks and Regards,
Deepa
As indicated try investing in 5-7 mutual funds
Hello Suresh,
Thank you for this article.
Currently I'm investing in "ICICI PRUDENTIAL VALUE DISCOVERY FUND – GROWTH" for the last one year and "HDFC TOP 200 – DIRECT PLAN" for the last five years. I would like to know whether it is good to continue investing in this mutual fund for long term.
From this month I'll start investing in "DPS Blackrock Micro Cap fund".
Please let me know your thoughts.
Regards,
Siva
Siva, HDFC Top 200 is underperformer, however it is recovering now. You can hold or exit and invest in better funds. DSP BR Microcap fund is good
Hello Suresh,
What about ICICI PRUDENTIAL VALUE DISCOVERY FUND? Shall I keep investing or hold or exit?
Also, as per your other comment you suggested to invest in 5 – 7 funds. I use ICICI Direct; and they charge 35 rupees per SIP. This would result in 175 – 245 rupees per month. This amount comes to 14% – 20%. Would like to know how to tackle this?
Siva, Talk to ICICIdirect, they are giving concessions if your invest crosses a limit. I use the same and they charge zero charges on MF investments.
Haapy New Year-2017, God bless you sir.Many thanks for your posts.Best Guidence for a common Man.
thank you sir
Thank you, again a great article.
I'm 27 and currently invest 7k over 6 different MFs (Canara Robeco emerging equities(G)-1K, Franklin India smaller cos (G)-1K, ICICI Pru Focused Bluechip (G)-1K, SBI magnum global (G)-2K, SBI FMCG (G)-1K, UTI Equity(G)-1K.. i tried to split across large cap and medium, small cap to minimize risk. can you please advise if I can continue investing in these and when should one stop investing in MFs.
Good funds, stay invested. Keep an eye on sector funds as they are high risk
The article very well covered SIP schemes. You may also include the SIP divisional investing in every 10th 20th and 30th of a month. Thank you.
Your articles are very informative and useful to a layman for investment purpose. We eagerly wait for your writings.
Sir ,
Sorry for asking this question ,
is this some type of add for Mutual Fund Investment ?
Hi Jaya, Do you mean some type of “Advt”? Let me be in your shoes for a minute. 1) I would not invest if someone says invest small amounts and you would become Crorepati. I need proofs, not theory 2) I would not invest in funds just becoz Suresh KP told me. I would check performance in medium term to long term. 3) I would not invest in some funds somebody says they are highly rated. I would refer Valueresearch online or Crisil rating 4) Finally, I would make my own decision and do not listen to Suresh KP. You read my article for 1-3 points indicated. Finally you take the call. All yours. I educate, you read and benefit. You have an option to ignore too. Let me know your further valuable comments if any.