How To Become Rich In India

How To Become Rich In India

Indian Market
by 5paisa Research Team Last Updated: 2022-04-07T15:08:02+05:30

Like everyone, you too want to become rich. Sure, people who have ancestral property can become billionaires easily. But even a middle-class salaried individual like you can also be rich if you make your money work for you right. Have you ever thought had you been practicing the following points, how much money you would have made by now? Here are 6 ways to becoming rich in India -

Living Within Your Means

This means managing debt and learning to budget. This may be a stepping stone to achieve your financial goals, successfully accumulate money and grow wealthy. The biggest trap stopping people to save money is multi-national companies luring them to buy things they might not even need. Learning to live within our means leads to a freer life. Whereas, debt can be a burden. We need to learn to save first and spend second.

Creating An Emergency Fund

Keeping an emergency fund is always a good financial move as you may always need money for your day to day expenses. You can park some part of your savings in liquid funds. As the name suggests, they are completely liquid which means you can withdraw money anytime. Keeping some part of your savings in bank account might also be a considerable option.

Making Money From Stock Market

Investments in stock market offers good returns. However, stock market is a volatile space where no one can predict exact return or loss. Key to consistently making money in stock market is to have a long-term horizon for investments, have an investment plan, and have the discipline to stick to it.

Mutual Fund Investments

Risk-averse investors who find it difficult to dedicate time to study stock market can take the mutual fund route to invest in stocks. By carefully choosing the best mutual fund, an investor gets the benefit of diversification and liquidity as some of the mutual fund schemes are highly liquid and advantage of professional management. Through mutual funds, one does not have to put in a lump sum amount, instead he/she can start off with as low as Rs 1,000/month via SIP. Mutual funds can offer returns of around 12%-15%.

Rebalancing Portfolio

Rebalancing investment portfolio means realigning the weightage of a set of assets in a portfolio. The process of rebalancing involves periodically selling or buying assets in a portfolio so that the targeted level of asset allocation is maintained. For instance, an investor may decide that his investment mix should be 50% growth stocks, 20% value stocks and 30% bonds. But over time, asset classes vary in performance. In a year’s time or so, the portfolio balance starts shifting as one asset overperforms and another underperforms.

Becoming A Venture Capitalist

In an urge to double their profits, venture capitalists or angel investors provide capital to startup companies. For instance, many angel investors in the United States had invested their money in shares of Facebook, when the popular social networking website was relatively new in the industry. Now, these stocks worth millions and billions of valuation.

Conclusion - Sure creating wealth is not a cake walk. Becoming wealthy is the result of many attributes such as saving discipline, patience, investing surplus funds smartly and readjusting portfolio periodically. Adhering to these methods to get rich would certainly help you accumulate wealth in the long run.

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