Systematic Investment Plan: Who doesn’t want to have enough money in his pocket to fulfill every wish of life? But most people consider the dream of becoming a millionaire as just a dream. However, now it can come true.
Systematic Investment Plan: Every common Indian dreams of becoming financially independent and giving a better life to his family. But when it comes to becoming a millionaire, most people leave it thinking it is a fantasy. But what if we tell you that you too can become a millionaire in just 10 years through SIP.
What is this formula?
If you choose a SIP that gives an annual return of 12 percent, then it is possible for you to become a millionaire. For this, you will have to do a monthly SIP of Rs 43,500 for 10 years. In these 10 years, you will invest 52.2 lakhs while your return will be Rs 48.8 lakhs. In such a situation, after 10 years you will have a corpus of more than Rs 1.01 crore. Although all this depends on the market, these are estimated figures. Let us tell you that this is not a miracle but the wonder of compounding, which Warren Buffett also calls the ‘8th wonder’.
Understand the complete calculation from the table here
| Description | Figure |
|---|---|
| Monthly SIP | ₹43,500 |
| Investment Period | 10 years |
| Estimated Returns | 12% p.a. |
| total investment | ₹52,20,000 |
| Estimated Returns | ₹48,86,749 |
| Total Corpus | ₹1,01,06,749 |
Let us tell you that for those who cannot afford to spend Rs 43,500 every month, step-up SIP is an option. If they start with Rs 30,000 and increase it by 10% every year, they can still reach close to Rs 1 crore in 10 years. The dream of becoming a millionaire through SIP can now turn into reality. This journey is not difficult, but it requires consistency and understanding. Make a plan, start and see how your hard-earned money becomes the basis of your future.
How to start SIP
Starting a SIP is very easy, you just need a little understanding and regularity. First of all, think about how much money you need and in how many years, this is called your investment goal. Then decide how much risk you can take, i.e. how much you can handle if the market fluctuates a little.
After this, go to a trusted mutual fund app or website and complete your KYC i.e. identification process there. If you want to invest for a long time, then equity funds can be a good option. Now decide how much amount you can invest every month, like 1,000 or 5,000 or as much as fits in your budget. Then choose the auto-debit facility from your bank so that the investment continues automatically every month.
