People who wants to be Crorepati definitely have come across the Reliance growth Fund advertisement which says “1 lakh grown to 1 crore in less than 22 years”. It grows over 100 times. Well, this was not an advertisement about a particular Mutual Fund Investment. It is a real life example of how one can earn 1 lakh to 1 crore in a very transparent manner with Mutual Fund schemes.
Most of the people believe that to get big returns they need to invest large amount of money. They have the perception, a small amount cannot make them Crorepati. But you would be surprised to know that mere sum of Rs 1,00,000 can make you a billionaire. In this article, I would be sharing a Mutual Fund that has convert Lakhpati’s to Crorepati.
However there is a condition. You need to invest your money for a longer time frame like approximately 20 or 20+ years. Similar, was the case with Reliance Growth Fund which offered return of 100% over 21 years. So, investors who have invested 1 lakh rupees in Reliance Growth Fund in its New Fund Offer (NFO) in year 1995, they have become 1 Crore rupees now.
Earn 1 Lakh to 1 Crore With Mutual Fund Schemes
Reliance Growth Fund was launched in year 1995. At that point of time the value of NAV was Rs 10. Lets assume that Mr. X invested 1 lakh rupees in Reliance Mutual Fund Scheme. So the total number of units that would have been transferred to his account would be 10,000.
As on 11th August 2017 the current NAV of the fund is 1023. This instance clearly shows that fund has shown 100% growth over 22 years. Now the present value of Mr. X is 1.02 crore. The entire amount is tax free. If I calculate return in the form of CAGR (Compound annual growth rate), the returns are 23.5%. In other words, if you are unable to reach to the hot seat in ‘Kaun Banega Crorepati’, just invest in some Mutual Fund scheme and become Crorepati. I know it will take 20 to 21 years to be a Crorepati but it would be worth waiting.
Key Lessons from the above example
1. Fund Selection Criteria
The amount of return that you wish to derive from your investment entirely depend upon the selection of funds. Hence it is very important to select right fund while investing your money. No matter whether you are investing your fund for long term or short term. Well every mutual fund schemes cannot offer you return as offered by Reliance Growth Fund. But still you can earn good returns by mutual fund investments.
2. Growth Options
It is advised that while investing in mutual funds you should invest in growth options. It can be said by comparing the NAV of Reliance Growth Fund and that of dividend fund. You will find huge difference between their NAV.
3. Don’t Panic Looking the Market Trends
If your mutual fund portfolio is giving you negative returns. Then don’t panic or exit from that scheme or never stop SIP. You should wait and invest for long term and never panic looking at downfalls due to change in market trends.
“Mutual Funds Investments are subject to market risks. Please read the offer document carefully before investing”.