To make their child a millionaire by the age of 18, parents need to harness the power of compound interest. By starting small monthly SIP investments in their child's name, they can build a substantial corpus over the long term. This corpus will be useful for their child's future higher education or business.

Due to rising inflation in the country, parents' biggest concern is their children's education. Every parent wants to ensure that their children don't have to share the hardships they face. Therefore, some people make small and large investments before their children's birth to ensure a better future for them.

If you're worried about your children's future, we've come up with a strategy for you. By the time your child turns 18, they'll have ₹1 crore of their own. This strategy, developed by ChatGPT, will make your child a millionaire by the age of 18.

What's the magic math behind ₹1 crore? Chat GPT says that if you invest in equity mutual funds for the long term, it's easy to achieve an average annual return of 12%. To achieve this, you'll need to start a monthly SIP (SIP) of ₹8,000-₹10,000 in your child's name as soon as they're born. By doing this, your child will be a millionaire by the time they turn 18. If you're thinking that the time has come for your child to turn 18, this will be your biggest mistake in making them a millionaire.

If you start SIP after your child turns 5 years old, then to make him a millionaire, you will have to do SIP of Rs 15000-18000 every month.

Additionally, if you start a SIP after your child turns 10, you'll need to contribute more than ₹35,000 per month. Only then can your child become a millionaire by the age of 18.

What if your budget is tight? If you can't afford to set aside ₹8,000 per month, don't despair. You can start an SIP with as little as ₹6,000 per month. You simply need to increase your SIP amount by 10% each year. This won't be a huge burden on you, as your annual investment will increase. This way, your child can become a millionaire by the time they turn 18.

ChatGPT clearly states that 1 crore rupees today won't be worth the same in 18 years. If you want to educate your child abroad or start a big business, your target should be 15 million to 2 crore rupees, factoring in inflation.

PC: TV9