Eating Pizza would make you Rich.

Young generation spends monthly 1500 rupees to have Pizza. 23% Indian population spends more than 2000 rupees for cigarettes. 34% spends for liquor and beer. Let us talk about diverting the 1500 rupees to mutual funds SIP. Do not tell you do not have reason to start mutual funds SIP.

Why you have to start Mutual Funds SIP:

Everyone has 2 Goals in their life. One is retirement planning and another one is children’s education. You can grow your money against time. The investment horizon gives better return in long term. Planning for retirement wealth accumulation or saving for your education should start as early as possible. To become rich, you have to accumulate the hard assets. Hard assets are stocks, mutual funds, real estate, gold and bonds. It is all attached to risk due to market condition and external factors. But hard assets give better returns in long term. Fixed deposit, insurance never make you rich. But hard assets.

Not taking risk is more risk in wealth creation.

Why you have to start early:

Let us discuss you invest 1500 rupees on mutual funds SIP for 30 years for your retirement. Consider in long term mutual funds provide more than 15% average returns. It would provide 1.1 crores after 30 years. Starting with 1500 rupees and accumulate 1.1 crore would be easy task. In case you want accumulate the same 1.1 crores after 15 years, you have to invest monthly 15000 rupees.

1500 rupees * 30 years * 15% = 1.1 crores
15000 rupees * 15 years * 15% = 1.1 crores

So start early to accumulate more wealth by mutual funds. How much you need to invest for your goals.

How much to start with in mutual funds:

The most important goal for everyone is retirement planning and children’s education. Invest 5000 rupees in mutual funds SIP. 1500 rupees for retirement planning and 3500 for children’s education. In case your age is 30+,

when you reach your retirement, you would have 1.1 crores for your survival ( 30 years of investment)
when you kid reaches 20, you would have 55 lakhs

(20 years of investment)

Do not make your kids search for education loan for higher studies. You give wings to your kids education by starting mutual fund SIP with monthly 5000 rupees. Since the investment horizon is more than 10 years, select large cap, mid cap and index funds. Select any two in these and start investing.

Stop eating Pizza and start your SIP.

Best mutual funds to invest in 2020:

Select any 2 funds for each goal. Always invest in direct funds to avoid commission in regular mutual funds. Select growth option to grow your wealth for longer term. List of mutual funds SIP to start with,

A xis Bluechip Fund-Growth
Axis Small Cap Fund Direct – Growth
Axis Long Term Equity Growth Direct Plan
SBI Small Cap Fund Direct Growth
Mirae Asset Emerging Bluechip Fund Direct – Growth
Aditya Birla Sun Life India GenNext Direct Fund Growth
UTI Nifty Index Growth Direct Plan
Kotak Standard Multicap Growth Direct Plan
UTI Nifty Next 50 Index Fund Direct Growth