Small Savings, Big Return: You Can Make Upto Rs 1 Crore Fund With Just Rs 170 Daily Savings -- Here's How

New Delhi: As the New Year unfolds, many are gearing up for investment ventures, and understanding every aspect of investment is crucial. With several options available, knowing where to invest for better returns is essential. Strategic planning and timely investments can help build a substantial fund.

If you save just Rs 5,000 per month and invest it in PPF, Fixed Deposits, or Mutual Funds, you could potentially accumulate a fund worth a crore. Let's explore how the right timing in investments can yield significant returns. (Also Read: Donations For Ram Mandir Now Eligible For Income Tax Deduction)

Invest In FDs Or Mutual Funds

If you are 20 years old and invest Rs 5,000 per month in an FD, Mutual Fund, or PPF, you could potentially create a fund of up to a crore. For instance, investing Rs 5,000 in an FD annually for 10 years at an interest rate of 6.5 percent would yield approximately Rs 11,26,282. (Also Read: LIC Unveils Jeevan Dhara II: Check Benefits, Features, And More)

Extend this investment for the next ten years, and you could amass over a crore. Consistently make this investment every ten years, and in 40 years, your fund could exceed Rs 1 crore.

Invest In SIP

Systematic Investment Plans (SIPs) can turn a modest investment into a substantial fund. By investing Rs 5,000 monthly through SIPs, you can create a sizable fund.

Investing Rs 5,000 monthly for ten years could accumulate around Rs 6 lakh. With the potential for robust returns, extending this SIP investment for ten years could result in a fund of Rs 13.9 lakh.

A 40-year investment could yield returns of up to Rs 15.5 crore on an initial investment of Rs 24 lakh.

Considerations Before Investing

Before delving into investments, it's vital to grasp the intricacies associated with risks. To minimize risks, avoid investing in a company's shares solely based on high returns.

Short-term investments usually carry higher risks, making long-term investments a wiser choice. Diversify your investments across various platforms rather than putting all your money into a single type of investment. Initiating investments sooner can result in more substantial returns.