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Everyone of remembers the "Kaun Banega Crorepati" show popularized by the grand presence of Big B. We remember the intelligence and great luck of Harshvardhan Nawathe who was the first winner to take the grand prize. Everyone dreams to become a crorepati.
Would you believe my dear friend that with patience and perseverance it is possible to become a crorepati within the next 20 years with regular investment by legal means. Monthly contribution of Rs. 6600 over a period of next 20 years with a 15% p.a. return can get you the stunning returns of Rs. 1 Crore as against your contribution of Rs. 15.84 Lacs only…..!!!!!!
Unbelievable yet true. That is the magic of principle of "Rupee Cost Averaging" 15% is what the sensex has grown at since its inception in 1980 when in started with 100 points which is also a reflection of corporate earnings growth. Historically over the last 10 years, some Mutual Funds schemes have given returns in excess of 25% Compounded Annual Growth Rate like Reliance Vision, Franklin Prima, Birla Sunlife Tax Relief 96 etc.
Systematic Investment Plans (SIP) absorb market volatility, exhibit a compounding force and inculcate a sense of Savings discipline in the individual, thereby act as a WEALTH BUILDER tool in the long run. While we look at the wealth creation angle to investments in our life, we can not ignore importance of the most important wealth creator/builder i.e. YOU. Human being is an income generating asset.
The risks in case of human being are related to early death, living too long, disabilities, sickness and unemployment. Life Insurance Corporation of India (LIC) is India's largest insurer with managed assets of Rs. 520000 crores. LIC has several interesting plans like Jeevan Saral which acting similarly like SIP in mutual fund can cover you for upto 250 times your monthly contribution.
Another interesting plan is Amulya Jeevan-I, a term insurance plan which offers insurance cover of Rs. 25 lacs by paying nominal premium of Rs. 746 per month !!!! (For a 30 year old person) Think over this my dear friend, disciplined wealth building supported by life cover for the wealth builder is the only way to realizing hassles free tension free financial freedom. |
