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How to achieve your 1st million using mutual funds


There are different ways to achieve your first million. The easiest one is to have a million friends and ask 1 peso from each one! There you have it, 1 million! 

However, it's not as easy as that. One can achieve it through business, buy and selling, real estate, or network marketing but the most doable is saving and investing for it. 

Let's see how and when we can achieve our first million by saving and investing using mutual funds. 
Earn your first million through mutual funds
Earn your first million through mutual funds
By having the following data and assumptions:

(1.) Monthly income: P15,000:

By saving your monthly income, you will earn your first million after 5 to 6 years!
Saving all your monthly income to achieve 1 million
Saving all your monthly income to achieve 1 million
But without spending a dime (no eat, no new clothing and all).

(2.) Save 20% of your monthly income:

By saving 20% of your monthly income, that is P3,000 per month. 
Saving 20% of your monthly income - P3,000
Saving 20% of your monthly income - P3,000
You will achieve your 1st million after 28 years of saving. Wew! That is still too far!

(3.) Assuming you'll invest the 20% in a mutual fund earning 12% average interest rate per year
(4.) Saving period is 7 years
(5.) Inflation, taxes and fees are not included for simple computation
Saving 3,000 per month at a mutual fund earning 12% interest per year for 7 years
Saving 3,000 per month at a mutual fund earning 12% interest per year for 7 years
By using mutual funds, you can therefore reduce the number of years to 15 years by saving 3,000 per month at a 12% average interest per year.

(6.) Using actual values from Philequity Fund, Inc. (source:www.philequity.net)
(7.) Investment and growth years within Jan. 2001 to May 2016 
Actual data and values by investing 3,000 per month of 36,000 per year in Philequity Fund, Inc.
Actual data and values by investing 3,000 per month of 36,000 per year in Philequity Fund, Inc.
By investing 3,000 per month or 36,000 per year in Philequity Fund, Inc. and applying the other assumptions and data used above, after investing for 7 years starting Jan.2001 up to today, (May 4, 2016) then the total investment value after 15 years is 1.6 Million Pesos!!! 

Earning your first million via mutual funds truly is doable. Though it may take quite some time, but it is surely dependent on the amount you invested, the time you let it grow and the interest or growth value. If you want to become a millionaire early, invest more! If you can't invest a lot yet, then patience should be a virtue.

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