HOW TO BECOME A CRORE MAN ?

Becoming a crore man is everybody's dream. When I was doing my MBA degree, I had the same dream. But as I am from middle-class family background becoming a crore man is not an easy task. Like me, every middle-class person wants to be a crore man.

At that time I found three ways to become a crore man. They are

1. Start own business
2. Moving to foreign countries and earning dollars
3. Investing in the stock market.

Case 1: Starting your own business needs knowledge and experience about the business which we want to start.

It also needs enough capital to initiate a business. In my case, my family doesn't have any business background and is unable to arrange an investment.

Case 2: Most educated people have the passion to go to foreign countries and earn dollars. From their earnings, they save some dollars and send them to their home countries. In my case, I also tried to go to a foreign country. But it was not successful, and I have a doubt, after reaching a foreign country if we won't find proper job facilities, then it is a difficult situation.

Case 3: I came to know about Warren Buffet, he is one of the richest men in the world. He started investing in the stock market at the age of 18 years. Somehow I got interested to know about the stock market. As a layman about the stock market and its functioning, I am unable to identify good stocks to invest in. Like me, there are many individuals interested to invest in stocks but they are unable to do research and most of them don't have time to analyze the company stocks.

so I found a good investment opportunity to become a crore man, that is Mutual Funds.

There are two methods of investments in mutual funds based on the frequency of income and its level.

• Lump sum investment
• Systematic Investment Plan (SIP) 

Those who are able to get large amounts of money once or twice a year can invest the money at a time. This method is suitable for business people and those who receive unexpected income like bonuses, incentives, etc.

The second method is a Systematic Investment Plan (SIP), which means investing a small amount of money monthly/quarterly. It is suitable for salaried people and those who are getting regular monthly income like rent and interest income. This is the best method to become a crore man.

Now we observe the following table to get one crore rupees.

Monthly SIP Amount	5000	5000	2000
Investment (Years)	23	21	30
Expected return (%)	15	17	15
Total investment	13,80,000	12,60,000	7,20,000
Total growth amount	1,03,16,481	1,00,14,116	1,12,63,541

 If an investor invests 5000 rupees per month and expected a return of 15% per year, it takes 23 years to become a crore man. If the expected return is 17% per year, it took only 21 years to get 1 Cr. There is an inverse relationship between expected return and the number of years to invest.

Those who are able to invest 2000 rupees per month with a 15% expected return should wait 30 years to be a crore man.

Note: The expected rate of return will change based on the different market conditions.

What do you feel about this article, please comment below and share with others...