Crorepati! Become one by this deadline! Top tip! Experts suggest this mutual fund SIP plan for investors

Planning for how to become crorepati can be tough. However, this plan demonstrates how large financial goals can be achieved with small monthly savings - as low as Rs 5,000 per month.

Scripbox 'My First Crore' is a plan in which Rs 25,000 per month is invested and SIP is increases annually, the investor can become a crorepati by 2030. Photo: Reuters

Turning into a crorepati is the desire that fuels almost every ambitious man. It is also one of the most frequently asked questions by mutual fund investors from their investment advisors. A majority of the times, mutual funds investment advisors wash their hands of the issue by saying they should go for long-term investment, may be for 20 or more years without giving much detailed data and analysis that can motivate a salaried person who is earning to the tune of Rs 50,000 per month or thereabouts. Scripbox My First Crore is a plan for those who dream of growing a financial net worth of Rs 1 crore. As per the investment advisors, if a person invests in this plan from 15,000 per month to Rs 25,000 per month and increases his or her monthly investment near 15 per cent every year, he or she can become a crorepati by 2030.

Speaking on the plan and its returns Sanjiv Singhal, Founder and COO of Scripbox said, "Scripbox My First Crore is a plan that demonstrates how large financial goals can be achieved with small monthly savings - as low as Rs 5,000 per month. This is further enhanced by adopting another good habit - of increasing your savings as your salary grows."

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Elaborating upon how a person can become a crorepati by investing in Scripbox' 'My first Crore' plan Sanjiv Singhal of Scripbox said, "If you are a young-earner, and your take-home is Rs 40,000 to 50,000, we recommend that you set aside between Rs 5000 (akin to Rs 167/day!) to Rs 15,000 every month (SIP) towards accumulating a crore. If you invest Rs 10,000 towards this goal every month, you will reach your goal in 15 years. The calculation takes into consideration that you will be able to increase your SIP by 15% every year - as salary increases, savings too should increase. If you are able to set aside Rs 15,000 every month, you will reach the goal in 13 years." He said that if a person whose monthly take-home income is around Rs 70,000, he or she can set aside Rs 25,000 per month and in such a case the investor can achieve his or her goal in 11 years means by 2030.

Source: Scripbox

Guiding the investor post-asset allocation Sanjiv Singhal of Scripbox said, "Once the consumer has decided the amount, the next stage of planning helps you to decide the asset allocation. There are three approaches - Active growth, balanced growth, and secure growth and each has its own expected rate of return based on the asset classes that make up the approaches. After the consumer starts investing, they will get a view of their progress including recommendations on course correction in case they are falling behind on the goal."

Source: Scripbox

Asked about the SIP return without increasing monthly income Jitendra Solanki, a SEBI registered investment expert said, "If the SIP is for more than 10 years, one can expect around 12 per cent return on his or her Mutual fund SIP. If a person invests Rs 20,000 per month, it would become around Rs 64 lakh to Rs 65 lakh in 12 years if the person doesn't enhance his monthly SIP after each year."

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