How to make Your First 1Cr in Stock Market Investing

When it comes to earning money, the stock market is a great source of opportunity since it offers significant profits to investors who make the right decisions. Among the many options for investing, mutual funds stand out as a popular option because they provide investors with a diverse portfolio that is overseen by knowledgeable experts. Many people want to make crores in the stock market, but how do they make their first crore? Are there tips that help you earn your crore in stock master faster? If you want to know the details about that and more, read this article.  

Using the 15-15-15 stock market rule  

The mutual fund industry's 15-15-15 rule is a straightforward yet effective idea. It suggests that an individual can potentially accumulate a corpus of ₹1 crore by investing ₹15,000 a month for a period of fifteen years at a 15% annual return. Financial gurus frequently recommend this rule as a guide for building long-term wealth in the stock market. This idea is explained by Pankaj Mathpal, who is the founder and CEO of Optima Money Managers. He also emphasizes how it can change people's financial prospects. 

Annual step up in monthly SIP 

However, Mathpal presents an alluring opportunity for aspirational investors keen to accelerate their ascent to the esteemed crore club. He says investors might expedite stock market earning accumulation by adopting a yearly step-up in monthly SIP (Systematic Investment Plan) amount in conjunction with income growth. This calculated move is supported by Jitendra Solanki. He is a SEBI-registered tax and investment expert. He presents the 15-15-15-15 guideline, which incorporates a 15% yearly step-up in SIP amount. 

Aligning SIP increments  

Solanki highlights the effectiveness of this strategy and highlights how it can maximize earnings over an extended period of time. Investing in SIP increments in line with income growth allows participants to take advantage of compounding to accelerate their money accumulation. According to Solanki's estimates, the first crore might be reached in as little as 12 years if the 15-15-15-15 rule is followed. After that, there is a chance that the money could double in just three years. 

Vehicles for wealth creation  

But which paths have the best chance of achieving this financial goal among the wide range of mutual fund choices? The CEO and founder of MyFundBazaar India Private Limited, Vinit Khandare, shares his thoughts on possible avenues for earning the first crore in the stock market. He lists three mutual fund categories: large-cap, mid-cap, and small-cap, each with a distinct value proposition. 

Small-cap funds  

Khandare advises investing in small cap funds, like the SBI Small Cap Fund — Regular Growth, for those looking for investments with significant growth potential. These investments carry heightened risk but offer the potential for exponential gains, focusing on smaller market capitalization companies. Mid-cap funds, such as the Aditya Birla Sun Life Mid Fund Plan, are aimed at companies with a moderate market capitalization, striking a balance between growth and stability.  

Large-cap funds 

For investors who value consistency and dependability above all else, Khandare recommends large-cap funds such as the HDFC Top 100 Fund - Regular Plan Growth. Generally speaking, these funds invest in popular businesses with a significant market capitalization that provides consistent returns with less volatility.  

Final thoughts 

So, in short, strategic planning and methodical execution are the keys to building up your first crore in the stock market through mutual funds. Through adherence to the 15-15-15 rule and the adoption of wise investment choices, investors can achieve financial abundance. The saying "The journey of a thousand miles begins with a single step" applies to the stock market and mutual funds, too. In this case, the first step may be a monthly SIP contribution in the direction of a more secure financial future.