A middle-class person often thinks that when will he break this boundary and join the list of millionaires. But in the true sense, becoming a millionaire is not a big deal. For this, you just have to choose those options for investment, which have the power to beat inflation. Also, you have to be a little disciplined in terms of investment. If you also dream of becoming a millionaire, then you can fulfill this dream in a few years. For this, you have to invest by adopting a special formula. Here know the way by which you can add a fund of up to ₹2,00,00,000 in a few years.

To add a fund of 2,00,00,000, you have to adopt the formula of 20X12X20 in terms of investment. In this, 20 means that you have to invest 20,000 rupees every month. 12 means 12% return, that is, you have to invest in such a scheme which gives 12% return and the last 20 means that you have to continue this investment for 20 consecutive years.

SIP Mutual Funds are considered to be a very powerful option in today's time to beat inflation. Despite being a market linked scheme, its average return in the long term is considered to be 12%. Sometimes, even better returns are obtained than this. In such a situation, you can understand that with the power of compounding, you can make a lot of money from this scheme in the long run. This scheme can make you a millionaire even with a small investment.

If you invest Rs 20,000 every month for 20 years, then in 20 years you will invest a total of Rs 48,00,000, but on this you will get an average interest of Rs 1,51,82,958 at the rate of 12 percent. In 20 years, you will get a total of Rs 1,99,82,958 (about Rs 2 crore) including the invested amount and interest. If you continue this investment for just 1 more year, that is, for a total of 21 years, then you can add up to Rs 2,27,73,484 at the rate of 12 percent return.

However, for such an investment, your income must also be good. The financial rule says that every person should invest at least 20 percent of his income. If you earn Rs 1 lakh every month, then at the rate of 20 percent, you can easily invest Rs 20,000 in SIP.

SIP is a market linked scheme. It does not give guaranteed returns. This calculation has been done on the basis of the estimated return of 12 percent in the long term. In such a situation, if the return is better, then you can get even more profit. On the other hand, if the return is a little less, then the profit can also be less. However, the good thing in the case of SIP is that it has less risk than direct stock and along with compounding, one gets the benefit of rupee cost averaging. In such a situation, the possibility of loss is less.

(Disclaimer: Investments in mutual funds are subject to market risks. Before investing, do your own research or consult your advisor.)