How to earn Rs. 1 Cr by investing just Rs. 1300 Per Month?

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Kaun Banega Crorepati?

Not everyone is lucky enough to win a game to have 1 Cr rupees in hand. we need to know how our hard earned money will earn us this 1 Cr rupees.

Earlier days, people use to save small amounts of money every month in their home/Banks and start investing only when it reaches sizable amount like 1 or 2 Lacs. That will make you miss out a big opportunity of compounding even with a small amount. You can even start an investment with as low as Rs. 500 per month.

What is the plan?

Many people will try to earn unrealistic returns with many investment options like

  • Few invest in stocks without having any knowledge and lose their capital.
  • Few will save in PPF/Government scheme and will realize later that their money is just inflation adjusted over the years.
  • Few will invest in Ponzi schemes who promise high returns and runs away with your capital.
  • Few will invest in Insurance linked Investments and fail to accumulate required corpus.

I feel choosing investment plan is very crucial in making your investments work in the long run.

To have superior returns, in the long run, one must consider Equity and Equity Mutua funds. You need not worry about day to day fluctuations in the market.

You may read What is NPS? Should you invest in NPS to get additional tax benefit?

What are Mutual Funds?

The mutual fund means investment from you and others will be added to an account and the same will be managed and invested by a Professional Full-time Fund Manager under the regulation of SEBI. This investment can be in Fixed income, Equity ( Stocks) and both, depending on the fund category. Returns will depend on the type of fund you select, whether Equity, Debt or a combination

Why Invest in Mutual Funds?

  • Stocks( Equity) delivered high returns over the long run. You can achieve large sums with stocks
  • If you are scared of markets volatility, You can hire a Fund manager with a very little charge who professionally manage your funds
  • Easy diversification of your amount, Your small investment will be spread across different stocks
  • A wide range of mutual funds to choose from. Choose best funds
  • Historically many Equity Mutual funds have given around 30% + Annualised returns
  • Inflation rates in stocks are automatically adjusted as input Raw material and output sales will be at market prices
  • You can exit /enter any time based on your convenience. This provides high flexibility and very has high Liquidity
  • Transparent, Regulated and controlled by SEBI.

How to earn Rs. 1 Cr by investing just Rs. 1300 per month

Small investment and Time Period are the main ingredients to earn high corpus amount through Mutual Funds!

Let me explain how can you make 1 cr by the time you turn 60 years.

If you are 30-year-old.

  • Your investment horizon will be 30 years by the time you turn 60.
  • Invest in Rs. 1300 per month in any investment plan which earns a 12% annualized return.
  • Increase this monthly investment amount by just 10% on a yearly basis, means 2nd year your monthly investment will be Rs. 1430( Rs. 1300+ 130Rs)
  • and so on.

Look at the table below examples with different age group and amount required

[emaillocker][/emaillocker]The investment required to have Rs. 1 Cr by the time you turn 60 Years

Present Age ---->30 year old35 year old40 year old50 year old
Monthly investmentRs. 1300Rs. 2600Rs. 5500Rs. 31,000
Increase monthly investment amount by 10% every Year
Investment period 30 years25 years20 years10 years
Returns % 12%12%12%12%
Total DepositsRs. 25.66 LacsRs. 30.68 LacsRs. 37.8 LacsRs. 59.28 Lacs
Total Maturity valueRs. 1.03CrRs. 1.03CrRs. 1.03CrRs. 1.03Cr

You might have noticed that the early you start making your investment the less you deposit to earn such a high amount.

“Compound Interest is the 8th wonder of the world. The one who knows it earns it and the one who doesn’t, pays it” – Albert Einstein

It is still disputed whether he said so or not, but it is really a wonder for your investments.

You may read Personal Finance- Popular Investment options in India

How to select Mutual Fund schemes for investment?

How these funds Selected?

  • Based on the highest past returns over the long term, like 3 years, 5 years and 10 Year time frame
  • CRISIL rates funds with Rank 1, 2 and 3 to indicate outperformers from each fund category
  • “Value research online” rates each fund category wise as 5 stars, 4, stars, 3 stars as they indicate high performers in that category
  • These are the funds with have high Assets Under Maintenance (AUM) , means more and more investors amount is being managed by these funds which prove their confidence among others
  • Only Direct plans are considered as they give higher returns than Regular ones (which can be brought from brokers/financial advisors who takes commission from your fund)


Happy Investing!  Sharing is caring 🙂

You may like to read How To Teach Investing Habits to Children

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