Mutual Fund SIP | Your dream of becoming a millionaire will come true, just remember this formula
Mutual Fund SIP Investing in mutual funds has become one of the most popular options. In such a situation, Indian people are also investing through SIP but many people are worried about how to invest. SIP has become a preferred investment option these days and it invests in mutual funds. Despite being market-linked, this scheme is becoming more popular as it carries less risk than investing money directly in shares. You can also start SIP with a small amount of Rs 500. Moreover, investing for the long term gives you good benefits of cyclical growth, which can help an individual build a bigger corpus. You can also make yourself a millionaire through this scheme. Yes, only Rs. Here is a formula where you can make yourself a millionaire by starting a Rs 1,000 SIP.
Want to become a millionaire 12X30X12 formula
12X30X12 formula of SIP investment can make you a millionaire. But you have to understand before applying the above formula for your investments. In this formula, 12 is the annual top-up of 12%, which means if you start a SIP at Rs 1,000, you will have to top up at the rate of 12% annually. Then you have to keep doing SIP for 30 years and the return on the remaining SIP is 12%.
SIP will make you a millionaire
Suppose you start investing with Rs 1,000, then you have to do regular SIP of Rs 1,000 continuously for a year. Then next year increase the SIP by 12% i.e. Rs 120, which will make your total SIP Rs 1,120. After that, do SIP 1,120 per month for the entire year and increase the amount by 12% next year. 12% of 1,120 would be 134. That means your SIP in the third year will be Rs 1,254. Thus increase the current amount by 12% per year and continue SIP for 30 years. Your income will increase every year so 12% top-up is not a big deal. In this way, your total investment in 30 years will be Rs 28,95,992, in which you will get a return of Rs 83,45,611 at the rate of 12% and a maturity amount of Rs 1,12,41,603 after 30 years. In this way you will become a millionaire through this formula.
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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