Published: 07th Jan 2025
By: Value Research
Time-tested principles that really work
Make systematic investment plans (SIP) your best friend. Investing Rs 10,000 monthly through SIPs can grow to Rs 9.6 lakh in 5 years or Rs 1.1 crore in 20 years. Increase investments by 10 per cent yearly, and you could hit Rs 2.2 crore in 20 years.
– Long-term (5+ years): Focus on equity for growth. – Medium-term (3-5 years): A mix of equity and fixed income can provide growth while balancing risk. – Short-term (<3 years): Stick to debt funds or FDs to avoid volatility.
– Life insurance: Get coverage 10-15x your annual income. A Rs 1 crore term plan costs ~Rs 11,000/year for a 30-year-old. Health insurance: Essential to guard against unexpected medical costs. Get family health insurance–it's non-negotiable.
Avoid get-rich-quick schemes like crypto or NFTs. Instead, stick to equity mutual funds, averaging 13 per cent annual returns over 15 years. Consistency beats chasing fads.
Set up SIPs to remove emotions from investing. Review your portfolio annually to align with goals. Rebalance as needed, shifting from equity to debt near milestones. Remember: Wealth building is a lifelong habit, not a one-year wonder.
Other Webstories
To get more such valuable insights, keep reading Value Research Online.