Investment Tips for investors: You will say that it will take generations to make 1 lakh to 1 crore. So my answer is no. Yes, if you have tried the traditional way..made a fixed deposit in the bank..opened a PPF..or took the NPS..then it is difficult. But today I am going to tell you the method, from 1 lakh to 1 crore and even more can be made. All the traditional methods of today suck your money. Taking your hard earned money from you, they only give you as much as you can to beat the rising inflation. In today’s time the inflation rate is 6.5 to 7 percent. And the traditional methods that I mentioned above are able to give returns only up to 8 to 9 percent. Now in such a situation, what is the other way for a common man to grow his money fast, I am going to tell that now.
Invest in Index Funds and make great money
If you are 25 years old… you have started earning a couple of years back, then you have a golden chance. You can make 1 crore not by saving 1 lakh rupees but by investing it. You will say brother, if you invest only 1 lakh, then when will you fulfill your hobby. So sir, you have two options, one lakh is not a huge amount..you can spend it in buying expensive mobiles or expensive gadgets or once you put it in a good place and forget it for a long time. And then when you see that money, you can buy not one or two but 100 iPhones from it.
A Small Investment Will Change Your World?
Since I advise every new investor to invest in index funds only. Because the world’s biggest investor Warren Buffett has also considered Index Fund as the best fund. So let me tell you that method. You have to choose any one index fund. Index funds usually give 12 to 15 per cent returns in the long term. Now let’s assume that you are 25 years old now and you put Rs 1 lakh lumpsum (i.e. putting money in one go) in any one index fund. The thing to note here is that you should invest your money when the stock market is down. This increases your chances of making a lot of good money in the long term.
How to make your retirement wonderful with 1 lakh, know the way
You put your Rs 1 lakh in an index fund and left it till your retirement. If you are 25 years old and want to retire at 60, 35 years is a long time to grow your money. Let us assume that your index fund gave a return of 15%, although it can give even higher returns..then after 34 years your Rs 1 lakh will become more than Rs 1 crore. That means one year before retirement, you will be in party mood.
The sooner you start investing, the sooner you will become rich.
The thing to note here is that you have invested only Rs 1 lakh. If you do more such investments, believe me, you can earn so much money till your retirement, which you would not have even imagined. And you can join the list of those 1% millionaires of the country. This is called the wonder of compounding. And this miracle works only if you give more time for compounding.. The sooner you start investing, the sooner you can become rich.