Best Investment Options in India to Earn One Crore in 5 Years?

Aiming to earn one crore in just five years does seem to be a highly ambitious goal. The biggest challenge associated with such a financial goal is that such high returns often come with higher risks too. Although we do have online tools like a Mutual Fund Calculator to help you plan your investments in a better way, we do recommend you consult a financial advisor and consider all pros and cons before making any investment to earn 1 crore in 5 years.

Through this post, we aim to help you choose the appropriate set of investments to earn one crore in five years with minimum risk involved.

Best Investment Options to Earn 1 Crore in 5 Years in India

Have a look at some of the top investment options in India that have the potential to generate significant returns over 5 years or more:

1. Equity Mutual Funds:

Mutual funds, as the name suggests pool money from multiple investors and invests in a diversified portfolio of bonds, stocks, and other types of securities. These are so far the best investment option in India to earn 1 crore in 5 years. The best options to consider for high mutual fund interest rates are HDFC Mutual Fund, Kotak Mahindra Mutual Fund, SBI Mutual Fund, and ICICI Prudential Mutual Fund. You may also use a mutual fund calculator to check the best mutual funds for profitable returns in 5 years.

2. Real Estate:

Be it a residential or commercial property, a real estate investment can help you fetch lucrative rental and capital appreciation. Do careful research before investing in real estate, because several factors may fluctuate the price of real estate, such as location, government policies, and economic inflammation scenarios.

3. Gold:

With the gold price sky-rocketing day by day, it does make sense to invest in gold to earn one crore in 5 years. It is so far, the safest way to invest your hard-earned money to get assured high returns. The choice is yours, whether you want to invest in pure gold or gold ETFs or Exchange Traded Funds such as ICICI Prudential Gold ETF, Kotak Gold ETF, and HDFC Gold ETF.

4. Fixed Deposits and Bonds:

Considered to be the lowest-risk investment plans, fixed deposits and bonds can also help you accumulate 1 crore in five years. The main difference between bond and fixed deposit is that the former offer a higher return as compared to the latter. But both help you save money for a specific period with low risks.

5. Cryptocurrencies:

Off late, cryptocurrency has gained popularity to generate high returns for investments made over some time. However, ensure you research well about the type of cryptocurrency you want to invest in because these also come with the highest risk. Some cryptocurrencies that are in high demand in India are Bitcoin, Solana, Binance Coin, Ethereum, and Dogecoin.

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Which Instrument Saves Tax in 5-Year Investment Schemes?

Apart from the above-mentioned investment options, you can use tax-saving instruments to save a huge chunk of money for 5 years. The best part about these schemes is that they help you gain tax exemptions. Here is a list of popular tax-saving instruments in India:

1. Public Provident Fund or PPF
2. HDFC Tax Saver Fund
3. National Pension System
4. SBI Magnum Tax Gain Scheme
5. Axis Long-Term Equity Fund

How to Reduce Expenses and Maximize Savings?

While you aim to earn more than 1 crore in 5 years, do not forget that you also need to check your expenses to collect that much money. So, here are some tips to reduce expenses and maximize savings for long term:

1. Smart Planning for the Future: 

The key to saving money for the coming years is by planning smart right away. Look for investments at an early stage to reap higher returns in future. Smart financial planning helps to provide a cushion for emergency expenses in future.

2. Well-Planned Budget: 

Do not forget to chart out a well-planned budget to keep track of your expenses. The aim should be to narrow down expenses by figuring out what can be avoided to save money.

3. Avoid Impulsive Shopping: 

Most of us indulge in impulsive shopping that wastes a lot of money. So, avoid buying things that you don’t need and will disrupt your budget.

4. Debt Reduction: 

Try not to take debt if you wish to save 1 crore in 5 years. Debts come with higher returns and can drain out your savings.

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Conclusion

Earning 1 crore in the next 5 years may sound like a dream, but it can be turned into a reality with careful planning, best investment plans, and a lot of hard work. It also involves a careful balance of risk and return. So, make sure to consider your financial goals, risk tolerance, and investment horizon before aiming to earn 1 crore in 5 years.

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