Imagine sowing seeds in a fertile field and watching your crops flourish season after season. That’s the magic of compounding, and it can work for your investments just as well.
Here’s the math: To turn a Rs 50,000 monthly investment into Rs 2 crore in 25 years, you’ll need an annual return of approximately 12%. Now, how do we go about achieving this?
- Equity Investments: Invest a significant portion in equity through SIPs in mutual funds or individual stocks. Make sure these choices reflect your risk profile and are aligned with the LSG framework of Jama Wealth—Liquidity, Safety, Growth.
- Debt Instruments: Allocate a smaller portion to debt instruments for safety and liquidity, but remember, these offer lower returns.
- Emergency Funds: Always have about 3-6 months of living expenses saved up in a liquid fund for emergencies.
Peter Lynch said, “Invest in what you know.” Start with sectors or mutual funds you understand.
To sum up, a mix of equity and debt, aligned with your risk profile and financial goals, can get you to that Rs 2 crore mark. Make sure to rebalance your portfolio every year.
Practical Tip: Use the JamaWealth app to keep track of your investments. It helps you know when you need to add more fuel to your fire. A SEBI Registered Investment advisory services to guide you in crafting a portfolio that aligns with your long-term financial goals.
