Become a crorepati by investing ₹100 daily:Where to invest; how a large fund can be built with a small amount

We often think that a large salary or substantial investment is necessary to become a crorepati. But in the world of investing, small amounts and a long period of time can often work wonders. By investing just ₹100 a day, you can build a substantial fund. The most important things for this are the habit of investing regularly and patience. Many people are unable to start investing because they feel they do not have enough money. However, financial experts believe that investing begins not with the amount, but with discipline. So today we will learn how to build a large fund by investing just ₹100. We will also learn-
Expert: Kushagra Mohan, Financial Expert and Co-Founder, Nixepa Capital, Lucknow Question: Is starting an investment with daily savings of ₹100 the right strategy? Answer: Yes, especially for people who are unable to start investing because of limited funds. Saving ₹100 a day amounts to approximately ₹3,000 a month. Investing this amount regularly can help build a substantial fund over time. Question: Who should start investing with ₹100 a day? Answer: This is a good option for people who cannot invest a large amount at once. Students and homemakers, in particular, can start with a small amount. See in the graphic who this is a good option for- Question: Where should one invest ₹100 daily, and which option can provide better returns? Answer: The right option depends on your goals, investment duration, and risk-taking capacity. Understand it through these pointers: SIP (Equity Mutual Fund) PPF (Public Provident Fund) RD (Recurring Deposit) FD (Fixed Deposit) Which is better? Question: If you invest ₹100 every day, how much could the fund grow to in 10, 20, and 30 years? Answer: By investing ₹100 every day, or approximately ₹3,000 per month, regularly over the long term, a substantial amount can be accumulated through compounding. See the graphic- Question- If you save ₹150 or ₹200 a day instead of ₹100, how big a difference will it make? Answer- Increasing your daily investment by just ₹50 or ₹100 may seem small, but its impact can be significant over the long term. This is because you invest more money every month, and that additional amount also continues to earn returns over time. For example- If the investment continues for a long period and earns an average annual return of 12%, this increased amount could create a difference of lakhs of rupees in the fund over 20-30 years. See the graphic-
See the estimated figures for a daily investment of ₹200 in the graphic below- Question-Is saving ₹100 a day enough for every financial goal? Answer- No, you can start investing with ₹100 a day, but it is not sufficient for every goal. Understand it this way- Small goals: For goals such as travel, gadgets, or a bike down payment, you can start investing with ₹100 a day. Children’s education: The cost of education increases over time. Therefore, you can start with ₹100, but you will need to increase the investment amount later. Buying a house: For a major goal such as a home down payment, ₹100 a day alone will not be sufficient. It is essential to increase your investment as your income grows. Retirement: This is a long-term goal requiring a substantial amount of money. ₹100 can be the starting investment. However, it is important to increase the investment over time for retirement. Question- If income increases, when and by how much should the ₹100 savings be increased? Answer- Generally, you can start by increasing the investment amount by up to 10% every year. This is called a step-up SIP. In this, the investment amount is increased every year by a fixed percentage or amount. For example- Question-Can stopping savings of ₹100 a day midway cause a loss? Answer-Yes, this can reduce the fund accumulated over the long term. The main reason is the reduced benefit of compounding. Compounding means that you earn returns on the money you invest, and then continue to earn further returns on the increased amount as well. Suppose, Question: What are the biggest mistakes made by people who invest ₹100 daily? Answer: Starting to invest with a small amount is a good thing, but some mistakes can affect the fund you build over the long term. See the graphic- Question – Is it necessary to review the portfolio from time to time even when starting to invest with a small amount? Answer – Yes, whether the investment amount is small or large, it is important to review it from time to time. This shows that-
Graphics- Ayushi Jain