Today’s middle class is not only worried about meeting daily needs but has also started thinking about securing the future. Inflation, increasing expenditure on education and worry about retirement have forced us to wonder whether an ordinary family can also become a millionaire. The answer is – yes. If the investment plan is made wisely and discipline is followed regularly, then this dream can come true.
SIP
SIP (Systematic Investment Plan) is a way through which any person can invest a few hundred or thousand rupees every month in mutual funds. Its biggest strength is compound interest. If a person invests ₹ 5,000 every month and gets an average annual return of 12 percent, then in 25 years this amount can reach about Rs 1 crore. This is a golden rule in the world of investment – the earlier you start, the greater the benefit and it does not require any big capital, only continuity is necessary.
Mutual Funds
Mutual funds are investment funds in which your money is invested by experts in shares, bonds, or government schemes of different companies. The advantage of this is that the risk is distributed and the investor does not have to get entangled in the nuances of the stock market himself. These funds can give very good returns on long-term investments. Investing in equity mutual funds through SIP can prove to be beneficial, especially for the middle class.
PPF
PPF (Public Provident Fund) is a long-term and completely safe government scheme. Its lock-in period is 15 years and the interest rate remains fixed. Here, both the interest received on the amount invested and the maturity amount are completely tax-free.
If a person invests ₹1.5 lakh in PPF every year, then in 15 years he can get around Rs 40-45 lakh. This can become a strong fund for big expenses like retirement, buying a house, children’s higher education, and children’s marriage.
Some great investment tips
Time is the biggest capital, so start as soon as possible.
Give priority to savings, and spend the rest of the money.
Invest according to your goals like education, home, marriage, retirement, etc.
Do not panic due to market fluctuations, stick to your strategy.
Insurance is also important: So that your investment does not get interrupted in case of any emergency.