Want to become rich? Use these money tips and become wealthy

Your money is constantly being eaten away by inflation. Price rise will always happen and, as far as common investors are concerned, anything less than a crore of rupees on maturity will not be enough to meet their investment goals, including retirement.

After selecting the category of mutual funds to meet the investment goal, one has to select the mutual fund plan also. Photo: Reuters

Your money is constantly being eaten away by inflation. Price rise will always happen and, as far as common investors are concerned, anything less than a crore of rupees on maturity will not be enough to meet their investment goals, including retirement. However, from the tax and investment advisers' viewpoint, everyone needs investment planning . In this, what should be done is fund allocation for all types of investment goals i.e. short-term goal, mid-term goal and long-term goal. After finalising the investment goals, one needs to allocate funds. All of this requires careful planning and hence to become rich or a crorepati needs top money tips, say tax and investment experts.

Providing money tips is Amit Kukreja, Founder at amitkukreja.com, who said, "Irrespective of one's income, one should try investing at least 10 per cent of one's income. One should first allocate investment funds in one's monthly expenses and set all types of investment goals ranging from short-term, mid-term to long-term."

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On how to choose one's investment goals, Kukreja said that buying a home, car or any other vehicle, can be put into the short-term investment goals, while children's study, child marriage, retirement fund, etc. can be put into the long-term investment goals categories.

On what should be the planned way of mutual funds investment Kukreja said, "Rather than investing a lump sum amount at one time, it's better to choose Systematic Investment Plan (SIP). SIP is a monthly investment plan in mutual funds. Depending upon the time horizon for investment, one should go for debt funds if the time horizon for investment is one to three years. For the above three years but less than five years, balanced funds are better options for a mutual fund investor. For an investment above five years but less than 7 years, large-cap or mid-cap mutual funds are better options for an investor. Similarly, for investment above eight years, small-cap mutual funds are the investment tool that will maximise one's return and help an investor become rich."

After selecting the category of mutual funds to meet the investment goal, one has to select the mutual fund plan also. For that, Kukreja advised investors to do some research work and not depend heavily on the mutual fund advisor only. They should check the star rating of the mutual fund plan after getting the advice of the mutual fund advisor. They should also check how much return the plan has given in the last three years.

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