Get ready to become a millionaire with just ₹100

Get ready to become a millionaire with just ₹100

Get ready to become a millionaire with just ₹100 in 2023

It is important to note that there is no guaranteed way to become a millionaire and any investment strategy involves a degree of risk. While it is possible to invest small amounts of money and potentially grow your wealth over time, it typically requires a long-term investment horizon, disciplined investing habits, and an appropriate investment strategy. So in this article we will Get ready to become a millionaire with just ₹100.

A small investment of just ₹100 every month can create a huge fund in the long run. If you do Micro-SIP of ₹100 every month, then in one year you will deposit ₹1200. Now plan to invest in it according to your age. This is such an investment where you do not have to withdraw any separate funds. Just a measly 100 rupees have to be invested in the whole month. In the coming 20 years, the total deposit will be ₹24,000. If there is an estimated return of 12% on this every year, then a fund of ₹98,925 will be ready. The same fund will be around ₹3.5 lakh on investment of 30 years. At the same time, in 50 years, you will be able to deposit ₹39 lakh.

Get ready to become a millionaire with just ₹100

Here are some steps you can take to potentially grow your wealth over time

  1. Start with a goal: Determine how much money you want to accumulate and over what timeframe. This will help you set a target for your investment portfolio.
  2. Choose appropriate investment vehicles: Consider investing in mutual funds, exchange-traded funds (ETFs), or individual stocks that align with your investment goals and risk tolerance.
  3. Invest regularly: Invest a fixed amount of money on a regular basis, such as monthly or quarterly, to take advantage of the power of compounding.
  4. Maintain a diversified portfolio: Spread your investments across different asset classes and sectors to reduce risk and maximize returns.
  5. Avoid short-term thinking: Stay focused on your long-term investment goals and avoid making hasty decisions based on short-term market movements.
  6. Monitor your portfolio regularly: Keep an eye on your investments and adjust your portfolio as needed to stay on track towards your financial goals.

What is Micro SIP?

Micro SIP or Micro Systematic Investment Plan is a facility provided by mutual fund companies in India that allows individuals to invest small amounts of money regularly in a mutual fund scheme.

If SIP investment is started with just ₹100, then it is called Micro SIP. Mutual fund regulator Securities Exchange and Board of India (SEBI) eased KYC rules for those investing in Micro-SIP. Investors can invest in it even without PAN. Two conditions have to be followed. No one is investing more than ₹50,000 in a year and will have to provide identity card with name and address.

Get ready to become a millionaire with just ₹100

Which documents are required?

Micro SIP does not require PAN or KYC (Know your customer) documentation. However, you must have a photocopy of a photo identification document, voter ID or driving license. Original documents also have to be shown for their verification. Information about the documents required for micro SIP can be obtained from asset management companies.

How to get verification done?

The documents you are giving as identity proof must be correct. Investors have to put their signature on it. Attestation also requires the signature of an ARN holder on the document, who is registered with AMFI as a mutual fund distributor.

Who can start Micro SIP?

Micro SIP Individuals, NRI, Minor can also open. Institutional investors of HUF or other categories are not exempted for Micro SIP.

Limitations in micro SIP

Rebate is not available for lump sum investment in Micro SIP. Lump sum investment is not applicable even if it is less than 50,000 in a financial year. This is only for SIP and the total amount under it should not exceed 50,000 in a financial year. More than one Micro SIP can also be started. If the Micro SIP SIP documents are found incorrect or incomplete, the investor will receive a deficiency memo and the SIP application will be cancelled.

Here are some benefits of micro SIP

  1. Affordable: Micro SIP allows investors to start investing in mutual funds with a small amount of money, as low as Rs. 100 per month. This makes it an affordable investment option for people with limited savings.
  2. Disciplined investment: Micro SIP allows investors to invest a fixed amount of money at regular intervals, which promotes disciplined investing habits and helps in wealth creation over time.
  3. Rupee cost averaging: Micro SIP enables investors to take advantage of the rupee cost averaging method. In this method, investors buy more units when the market is low and fewer units when the market is high. This helps to reduce the average cost of investment and maximizes returns.
  4. Flexibility: Micro SIP allows investors to choose the investment amount, investment frequency, and the mutual fund scheme that suits their financial goals and risk appetite.
  5. Diversification: With Micro SIP, investors can invest in a variety of mutual fund schemes that are managed by experienced fund managers. This helps in diversifying the portfolio and reducing risk.
  6. Compounding benefits: Micro SIP provides compounding benefits, which means that the returns generated on the investment are reinvested, thereby increasing the overall value of the investment.

In conclusion, Micro SIP is a convenient and affordable way to start investing in mutual funds. It promotes disciplined investing habits and provides various benefits like rupee cost averaging, flexibility, diversification, and compounding benefits. Investing ₹100 may not be enough to become a millionaire on its own, but it can be a good start to building a diversified investment portfolio. Hope you like this article on Get ready to become a millionaire with just ₹100. Please don’t forget to share it.

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