Do you think that creating a fund of 1 crore is only a game of the rich? If yes, then wait a minute! If you can save just ₹1,000 every month, then you too can reach this point. All you need is the right planning, a little patience and the magic of compounding.

Now imagine, keep investing ₹1,000 every month in mutual funds through SIP. SIP means Systematic Investment Plan – where you invest a fixed amount every month. This method can gradually turn your small savings into a big fortune.

Adopt the trick of annual step-up to reach Rs 1 crore quickly

However, it will take a lot of time to reach Rs 1 crore from just Rs 1,000. That is why there is a need for a simple trick – 'annual step-up'. This means that you keep increasing your SIP amount a little every year. Suppose you increase your SIP amount by 10% every year. So in the first year you invest Rs 1,000 per month, in the second year it will increase to Rs 1,100, in the third year it will increase to Rs 1,210 and so on every year it will keep increasing a little.

This method is also good because as your income increases, you can also increase your investment. This makes it even easier to reach your financial goals. This will increase your investment, give you higher returns and the effect of compounding will also be strong. So the next time you think what can be done with ₹1,000, remember - this is where the journey to becoming a millionaire begins!

How long will it take to reach 1 crore?

If we assume that you are getting 12% annual return (which is a common estimate of mutual funds for the long term), then see what happens:

Monthly SIP: ₹1,000

Annual step-up: 10%

Expected return: 12% every year