How can I grow Rs.25 lakh to 1 crore in 5-7 years?

Many of the retail investors who have entered the market since 2020 onwards feel that markets go in one direction and returns are guaranteed

Let us look at the possible rate of return expected as per the question

Capital to be Invested: INR 25 Lacs

Return Amount Expected: INR 1 Crores

Profit to be Made: INR 75 Lacs

Time Horizon: 5 years

Annualized Rate of Return: ~32% (expected return per year)

Time Horizon: 7 years

Annualized Rate of Return: ~22% (expected return per year)

The question to ask here is that which invest vehicle provides more than 20% returns annually for so long?

I am certain that equities (stocks, mutual funds) or Gold or Real-Estate cannot provide every year returns of 20% to achieve the target in mind.

For Quick Gains, you need to take extreme risks. In this case, it is possible you can loose the entire INR 25 Lacs also.

Understand the reality and invest in the markets or any investment vehicle that gives returns without eroding your capital invested.

All the best

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Happy Investing and God Bless!

About the Post Author:

The Author is an AMFI registered Mutual Fund Distributor (ARN-262589). Reach out to him via email: edteficonsult@gmail.com