‘Secret formula’ to become a millionaire: Just save this many thousand every month, and easily create a huge fund of Rs 2 crore!

Everyone dreams of having a bank balance worth crores of rupees for future security and a luxurious retirement. Often the common man feels that it is not within his reach to deposit a huge amount like Rs 2 crore and for this it is necessary to have a salary of lakhs. But personal finance experts believe that if you start investing smartly at the right time, this goal is not difficult at all. You can easily reach this magical figure through Systematic Investment Plan (SIP) in Mutual Funds. Let us understand how much money you will have to invest every month from your salary to achieve this big goal. What is the real secret of achieving Rs 2 crore? According to experts, the real secret of creating a fund worth crores is hidden only in the ‘Power of Compounding’ (power of compound interest). Success in the stock market is not determined by how much you understand the market, but by how much time you spend in the market. The younger you start investing, the more and faster the benefits of compounding. It is common to get an average annual return of 12 to 15 percent in long-term mutual fund investments, and it is this return that makes you a millionaire. How much will you have to invest every month for a target of Rs 2 crore? If you want to create a great fund of Rs 2 crore, then the amount of your investment will depend on the number of years you are investing. According to financial mathematics, if you expect 12 percent annual returns: If you have a time horizon of 30 years, then to accumulate Rs 2 crore, you will have to do a SIP of only Rs 5,700 every month. If you want to achieve this goal in 25 years, you will have to invest around Rs 10,500 every month. Whereas if you have only 20 years to invest, then you will have to invest around Rs 10,500 every month. You will have to deposit about Rs 20,000 from your income. Step-Up SIP will make your journey easier. It is not possible for many youth to save Rs 10 or Rs 20,000 every month at the beginning of their career. In such a situation, financial experts give the magical mantra of ‘Step-up SIP’. This simply means that you start investing with a small amount (like Rs 2000 or Rs 3000) and then every year as your salary increases, increase your SIP amount by 10 to 15 percent. This method will help you easily reach your target of Rs 2 crore without any big financial burden. Keep these things in mind while starting investment. The most important advice of experts is that in this long journey of investment, ups and downs in the market are absolutely certain. Never panic and close your SIP when the market is in the red, rather see the recession as a golden opportunity to buy more units. Also, instead of investing your entire amount in one place, keep your portfolio diversified and take the help of a certified financial advisor.