SIP: With the power of the 10x12x50 formula of SIP, you can become a millionaire in just 10 years. By investing Rs 50,000 every month in mutual funds, you can make more than 1.12 crores at 12% annual return. What is SIP? What are its benefits? What is a mutual fund? How many types are there and how is wealth created by compound interest? If you want to know the easy way to become a millionaire by regular investment and disciplined savings, then you will have to read this report from beginning to end, only then you will be able to know its secret.

SIP: "Earning money and saving money is a tough job today. If a person manages to do this while running a family, he is no less than today's Alexander. If one or two lakhs are saved while running a family with a fixed income, it is enough. Most of the employed people do not even have that much savings." This is not said by us. Such things are said by those who do not know SIP i.e. Systematic Investment Plan. Almost half of India does not know about it. In this too, most of the people who know about SIP do not know the 10x12x50 formula of SIP. If they know this, then in just 10 years they will become the owner of more than 1.12 crores by investing money. Now you will say that whatever has been thrown away is thrown away, do not throw it away now. Then we will say that if you do not know about the power of SIP, then know it in detail. Let us tell you in detail about the 10x12x50 formula of SIP.

What is SIP?

Before knowing the power of the 10x12x50 formula of SIP, it is very important for you to know about SIP, otherwise you will be left with incomplete information. SIP i.e. Systematic Investment Plan is an easy and disciplined way to invest in mutual funds. In this, the investor invests a fixed amount every month or at a fixed time. It can start with a small amount and gives the benefit of compounding in the long run. SIP gives the benefit of rupee cost averaging, due to which the effect of market fluctuations remains balanced. It teaches discipline to the investor and is a well-planned means of creating wealth. The investor can start, stop or increase or decrease it at any time.

What is a mutual fund?

When you have learned about SIP, it is very important to know about the mutual fund in which you have to invest through SIP. Mutual fund is an investment instrument in which the money of many investors is invested in shares, bonds and other securities. It is managed by professional fund managers and investors get profit or loss in proportion to their units. Its specialty is diversification, transparency, liquidity and starting with less capital.

How many types of mutual funds are there?

Mutual funds are mainly of three types. These include equity fund, debt fund and hybrid fund. Equity fund invests in shares, gives high risk and high return. Debt fund helps in investing in bonds and government securities, gives low risk and stable return and hybrid fund is a mix of both shares and debt and a balanced option. Investors can invest in it through SIP or lump sum. Its benefits are disciplined savings, tax benefits (ELSS) and wealth creation in the long term. However, it also has market risk and risk related to fund management. With the right planning and patience, mutual funds can prove to be an excellent investment.

What is the 10x12x50 formula of SIP?

Now you have come to the point. This information is most important for you. It is very easy to understand the 10x12x50 formula of SIP. Suppose you are 40 years old and you want to invest a large amount in the remaining 10 years of your career and save a large amount. To save a large amount in 10 years, you will have to invest at least Rs 50,000 in a mutual fund every month through SIP. You will get a return of at least 12% annually on this. You can do this only if your salary is between Rs 80,000 and Rs 1 lakh. By doing this, you can save more than Rs 1.12 crore in the next 10 years.

How will you become a millionaire with the 10x12x50 formula of SIP?

The second question you have is absolutely justified, how can one crore rupees be deposited in the next 10 years on the basis of the 10x12x50 formula of SIP. According to the popular SIP calculator Grow.in across India, if you are 40 years old and you are depositing Rs 50,000 every month in a mutual fund through SIP, then in the next 10 years, about Rs 60 lakh will be deposited in your account. Now, on this deposit, you will get Rs 52,01,794 as a compounding return of 12%. Now, if you add the principal of Rs 60 lakh and the amount of Rs 52,01,794 received as return, then you will have an amount of about Rs 1,12,01,794 i.e. more than 1.12 crore. Now you tell me, if you regularly deposit Rs 50,000 every month in a mutual fund through SIP, will you become a millionaire in 10 years or not?

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