5 min read
Updated on Jan 31, 2024
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 learn How to make 1 crore in 5 years with minimum risk involved.
Table of Contents Show
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:
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.
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.
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.
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.
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.
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:
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:
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.
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.
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.
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.
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.
Browse Mahindra Paybima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra Paybima to Buy Insurance Online.
If you aim to get 1 crore in 5 years, then you must invest approx. Rs. 117,000 monthly to reap an annual return of 12%.
Try investing in the following schemes and plans to become a Crorepati in 5 years in India:
~ ELSS Tax Saving Mutual Funds
A good idea to double your money in 5 years in India is by investing in long-term mutual funds because they offer an interest rate that ranges between 12 – 15%. The other profitable investment that can help you double your money in the next five years is by investing in Kisal Vikas Patra or KVP.
According to experts, National Savings Certificates or NSC are the best investment for a tenure of 5 years. With an NSC, one can expect a 7% annual interest, but the whole amount is payable only at the time of maturity.
The following tips will help you save a huge amount of money for the next 5 years:
~ Early investments
~ Investments in mutual funds
~ Tight budget planning
~ Spending less and saving more
~ Recording all your expenses
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Taxpayers can claim tax deductions under section 80DDB of the Income Tax Act, 1961, on the treatment expenses of certain specified diseases. This deduction can.
You may already know that a rental income or the money earned from renting a property is subject to TDS or tax deducted at the.
Every taxpayer in India has to pay taxes on their income. However, the Income Tax Act offers various options to avail of exemptions in different.
Charity or giving donations is a beautiful deed. It not only brings peace of mind and inner happiness but also allows people to earn tax.
Form 26AS is a tax credit statement that provides the complete record of the taxes paid by a taxpayer. It is an important document needed.
Section 80DD is a section under the Income Tax Act 1961 that allows tax deductions to families with a differently-abled member. This section is incorporated.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue