11x12x20 SIP Formula: The easiest shortcut to become a millionaire! Understand this magical rule of SIP of ₹ 11,000
If you are also planning to invest to secure your future financially, then Systematic Investment Plan (SIP) in mutual funds is the best way for you. Often people think that to become a millionaire one has to invest lakhs of rupees in lump sum, but this is not at all the case. Today we are going to tell you one such magical rule of the world of mutual funds, with the help of which you can create a fund of more than ₹ 1 crore in a very disciplined manner. The name of this magical strategy is – 11x12x20 SIP Formula.
This formula shows how a small start and the power of compounding can grow your money manifold in the long run.
After all, what is 11x12x20 SIP formula?
The mathematics of this formula is very easy to understand. It is divided into three main parts:
11 (Monthly Investment): This means that every month you SIP of ₹11,000 Have to start from.
12 (Estimated Returns): This means that the average annual return on your investment will be 12% return Should get (12% return is considered a very practical and normal figure for long term in mutual funds).
20 (Investment period): This means that you have to continuously without stopping for 20 years This investment will have to be continued.
Complete picture of your investment after 20 years (SIP Calculation)
If you strictly stick to this 11x12x20 formula, then after 20 years when your fund matures, the complete mathematics of your investment will look like this:
| investment details | estimated figures |
| Monthly SIP | ₹11,000 |
| Total Tenure of Investment | 20 years |
| Total investment from your pocket | ₹26,40,000 (Rs 26.40 lakh) |
| Estimated Wealth Gain / Profit (Capital Gain) | ₹74,78,431 (Rs 74.78 lakh) |
| Total fund to be received after 20 years (Total Value) | ₹1,01,18,431 (More than ₹1.01 crore) |
That is, you saved only ₹ 26.40 lakh from your pocket and invested it in 20 years, but due to the combination of time and compounding, you earned a net profit of ₹ 74.78 lakh. As a result, once you complete 20 years you will have Big fund of more than ₹1 crore Will be ready.
Why is SIP the most special medium in mutual funds?
The real magic of compounding: You also get returns on the returns you get in SIP. The longer the investment period, the faster your profits will rise like a rocket.
Very easy to get started: A huge amount is not required to start SIP. You can only according to your capacity ₹500 per month You can also start it from.
No Maximum Limit: You can invest as much money as you want in SIP, there is no maximum limit.
Flexibility: The biggest feature of SIP is that it is completely under your control. If your income increases in future, you can increase it (Step-up). At the same time, if necessary, its amount can be reduced or paused for a few months.
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