Crorepati Tip: Save Rs 150 per day and get massive Rs 5.71 crore! Here is how to earn money

Crorepati Tip: Using a 10 per cent annual step-up trick in SIP of Rs 4,500 for 30 years, one can expect to get Rs 5.71 crore maturity amount.

Crorepati Tip: Same Rs 4,500 SIP for 30 years without 10 per cent step-up trick would fetch Rs 2,54,73,893 on maturity. Photo: PTI

Crorepati Tip: Yes, you can become a crorepati multi times over! How to retire rich is one of the most searched investment tips for investors anywhere in the world. Well, the plain an simple answer is that investors need to start small and then add to that to get a massive pile of money in as short a time as possible. In fact, when an earning individual starts investing, he or she should be clear about the investment goal. According to the tax and investment experts, having clarity regarding their investment goal and investment discipline is the most important variable in getting a pile of money in the form of retirement funds. Most critically, you must start saving early in your life as retirement-oriented investments are long-term investments and once you retire, your options to earn become less.

How to become a Crorepati: Experts are of the opinion that an equity mutual fund with SIP (Systematic Investment Plan) mode can help an investor retire just at the age of 55, provided he or she has started to invest at the nascent phase of career or say when they were around 25 years old.

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Speaking on the minimum return that investors can expect after investing for around 30 years, Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "An investor, who invests for around 25 to 30 years in SIP, can expect to get around 15-17 per cent return on investment." He said that SIP is gaining traction among young professionals as it can be started with Rs 500 only. Jhaveri advised young professionals to start a SIP worth Rs 3,000 to Rs 4,500 a month and go on for as long as they can.

Let's assume a 15 per cent return on one's Rs 4,500 SIP per month for 30 years. In such SIP an individual would be investing Rs 16,20,000 in the entire investment period and the return he or she would get is Rs 2,38,53,893. This means the maturity amount the investor would get after 30 years of Rs 4,500 SIP would be Rs 2,54,73,893.

However, there is another way through which the same Rs 4,500 monthly SIP or Rs 150 per day can become a whopping Rs 5,71,44,674 maturity amount in the same period. Elaborating upon the trick Jitendra Solanki, a SEBI registered tax and investment expert said, "One gets annual increment of at least 10 per cent. The ideal way of making a good return on SIP for the long-term is to increase one's SIP by at least 10 per cent per annum. In that case, the maturity amount grows geometrically and one can think of retiring with that kind of amount 4-5 years before the ideal age of retirement."

On the basis of what Solanki advised, let's assume that one steps-up one's Rs 4,500 SIP by 10 per cent annually, in that case, the SIP calculator suggests that one would be investing Rs 88,82,677 in 30 years and the return he or she would get in the same period would be Rs 4,82,61,997. This means the maturity amount that the investor would get after 30 years in the step-up form of SIP would be Rs 5,71,44,674, which is 124 per cent higher than the SIP maturity amount of Rs 2,54,73,893 without step-up.

So, as per the SIP calculator, one can grow one's money 124 per cent more in 30 years of SIP by using 10 per cent step-up rate and generate a retirement fund which can be as much as the earning individual is expecting at the time of retirement.

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