Want to build wealth with small amount of saving? Here's how to do it

Most mutual fund schemes have minimum investment requirement of Rs 500 for monthly SIP and Rs 5,000 for lump sum investment.

Mutual funds allow you to start building your investment portfolio even if you have a nominal amount of Rs 500 to invest. However, even a small amount of Rs 500 invested over a long period can help you create a handsome amount of wealth. All you need is to identify your investment objective and your long-term financial goal which might be education or wedding of your child or retirement planning for your own self.

“Aligning financial goal with your investment would help you decide how much to invest and the category of mutual funds to opt for,” said Manish Kothari – Head of Mutual Funds, Paisabazaar.com.

Kothari further added that most mutual fund schemes have minimum investment requirement of Rs 500 for monthly SIP and Rs 5,000 for lump sum investment. “However, ELSS funds have a lower floor amount of Rs 500 for both lump-sum and monthly SIP. Some funds like Reliance Small Cap also allow SIPs of Rs 100 for minimum monthly installments of 60 months,” he said.

Here are four different cases which will help you understand how you can create huge wealth by investing systematically over the long term. We have taken Rs 1 crore as your target corpus. Here is how much you need to invest in mutual fund SIPs to get to that goal