Mutual Fund SIP | Secret formula to become a millionaire, an investment of Rs 2,000 will accumulate a fund of Rs 2 crore.
Mutual Fund SIP People often think that a person can become a millionaire by making big investments. With the right financial strategy and discipline, you can build a huge corpus even with small savings. For this you will have to invest small amounts over a long period of time. There is a simple and effective formula by which you can start investing with Rs 2000 and build a corpus of Rs 2 crore.
What is the 25/2/5/35 formula?
* This formula is designed for long term investment. * 25: Start investing at the age of 25. *2: Start with SIP of Rs 2,000 per month. *5: Increase your SIP amount by 5% per year. * 35: Continue this process continuously for 35 years.
How does the formula work?
Suppose you started a SIP of Rs 2000 at the age of 25. In the first year you will invest Rs 2000 every month. Next year, the amount will be increased by 5% to Rs 2,100. Similarly, keep increasing the SIP amount by 5% every year. In this way you will invest for 35 years.
How much return will you get?
According to this formula, you will invest a total of Rs 21,67,680 in 35 years. If you get an average annual return of 12%, you will get Rs 10,000. Interest will be paid on Rs 1,77,71,532. That means the total amount will be Rs 1,99,39,220 (approximately Rs 2 crore).
Benefits and Precautions
* Start Small, Big Profit: It is easy to start with a small amount like Rs 2000. * The magic of cyclical growth: Investing for a long time gives the full benefit of cyclical growth. * Huge inflation rate hike: 12% returns exceed inflation rate, increasing the value of your savings. * Regularity is important: Be disciplined and consistent in investing. * Consult a financial advisor to choose the right fund. With a little savings and discipline, you can apply this formula to become a millionaire in your life.
Disclaimer : Investing in mutual funds and stock market is based on risk. Before investing in the stock market, definitely consult your financial advisor. tezzbuzz.com will not be responsible for any financial loss.
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