FD, PPF or Mutual Fund: Know which option will make crorepati the fastest
Well, who does not want to be a millionaire in today's time? Surely most of us would like to be millionaires. But how many of us really strive to become millionaires? Maybe we sit and wish to become a millionaire someday, winning the lottery or some other miracle like that. But there is a way by which you can become a millionaire. This is the way of investment. Know further complete details.
Easy to become a millionaire by investing
Becoming a millionaire by investment The option of making money through easy investment is in front of you, which can make you a millionaire. Disciplined investing can slowly take you towards becoming a millionaire. Slow and steady running can bring you victory.
Become a millionaire with a very simple option
Let's take a look at three common investment options (PPF, Bank FDs and Mutual Funds) before investors. Comparing these will give you an idea of how long it will take to become a millionaire.
PPF
PPF Public Provident Fund (PPF) is the safest of the tax-saving investment options. In this scheme managed by the Government of India, there is a sovereign guarantee of the government. Contrary to popular belief, PPF interest rates do not remain constant throughout the tenure. The Finance Ministry reviews the interest rates of PPF along with other small savings schemes every quarter. Interest rates are mainly determined on the basis of government bond yields. At present, the government has kept the interest rate of PPF at 7.1% per annum. This is for the July-September 2022 quarter. In how much time you can become a millionaire, it also depends on how much you invest every month. If the PPF rates remain the same and you invest Rs 12000 every month, you will be able to create a corpus of Rs 98.95 lakh in 25 years. Now if interest rates increase or you invest more, then this work can be done quickly.
bank FD
Bank FD Bank FD is one of the most common and traditional investment instruments in our country. In banks, FDs are insured up to Rs 5 lakh. Simply put, DICGC (Deposit Insurance and Credit Guarantee Corporation), which is a subsidiary of RBI, provides insurance cover for this deposit. As far as returns are concerned, at present, the interest rates of various banks range between 3%-7% per annum. Talking about becoming a millionaire, if you make a one-time FD of Rs 27.60 lakh and you are offered an interest rate of 6.5 per cent, then you will be able to create a corpus of more than Rs 1 crore in 20 years. If you get more interest then you can become a millionaire quickly.
mutual fund
Mutual Funds Mutual Funds have a rule called 15X15X15. Here the number '15' is used three times in this rule. These include growth rate, tenure and monthly amount of savings. Assuming that you will get 15% annualized return in 15 years (180 months), you will need to invest Rs 15000 every month to arrive at a corpus of Rs 1 crore. That is, 15 years, Rs 15000 per month and annual return of 15% will make you a millionaire.