Investment Calculator

Ten years is a good period to utilise some of the long term investments to grow your money. If your risk appetite allows, you can also take a little more risk with exposure to equity funds. The best option, in this case, would be to use ULIPs for balanced portfolio investments. ULIPs like Invest 4G, from Canara HSBC Life Insurance, allow you to passively manage your equity exposure to avoid market pitfalls too. Plus, the investments and maturity proceeds are tax-free.

You can use an online investment or savings calculator to quickly estimate lump sum investment amount. You will need to use the targeted future value, rate of return on invested money and investment horizon for this calculation.

If your aim is to turn your Rs. 100,000 into Rs. 200,000 and you are open to the investment horizon, you can invest the money in equity funds. The best way to allocate this amount in an equity fund is through SIP over a few months. But, if you have a maximum time limit for your goal, say 10 years, then guaranteed investments would be a better idea. For example, a guaranteed savings plan or debt funds would give you the certainty of doubling your invested money.

Investments with tax-free and market-linked returns are the best investments in any year. A few of such investments are unit-linked insurance plans (ULIPs), guaranteed savings plans, moneyback plans, PPF account (for 15-year tenure), ELSS funds if you are an aggressive investor. Out of all ULIPs offer the best flexibility in terms of risk and fund management including taxation.

A millionaire in terms of Indian currency would mean that you at least have Rs 10 lakhs in cash or equivalent investments. Being a millionaire is not difficult if you are already earning some money. it will take say as little as Rs 5000 a month for you to build a corpus of Rs 10 lakhs in a few years. Without earning any interest such investment will take about 17 years. If you invest this amount aggressively you may build the corpus in just about 10 years or less. Use the investment calculator to determine the saving horizon you need to build such corpus.

You need to build a large pool of funds to be able to draw a significant amount as income out of it. Thus, in the beginning, you need to focus only on two things – 1. Maximize savings, 2. Invest this savings aggressively for growth. Depending on what portion (90% to 10%) of your income you invest regularly, you can replace your present income within 15 to 30 years.