Today, even if 1 crore may sound like a lot to you, 20 years from now, having 1 crore will not be a big deal. Therefore, if you are planning for your future, then keep in mind that you will have to save this much money to make your future better. If you want to create a fund of crores of rupees, then Mutual Funds can be a very good option for this. Through SIP, you can invest a little every month and save crores of rupees in the long run.

But there are two ways to invest through SIP. The first is regular SIP and the second is Step-up SIP. In such a situation, if you choose regular SIP, then how much money will have to be invested every month to save 1 crore rupees in 20 years, or if you choose Step-up SIP, then how much amount will have to be invested every month? Know about this here.

If you want to become a millionaire in 20 years through Regular SIP, then you will have to invest at least Rs 11,000 every month. By investing Rs 11,000 every month for 20 consecutive years, you will invest a total of Rs 26,40,000. The average return of SIP is considered to be 12 percent. If you calculate according to a 12 percent return, then you will get a total of Rs 74,78,431 as interest in 20 years. In this way, after 20 years, you will become the owner of Rs 1,01,18,431 by combining the invested amount and interest. Step-Up SIP: Understand what it is before calculation. Step-Up SIP is also called Top-up SIP. To make money in this, you have to apply top-up in SIP from time to time. Suppose you start a SIP with Rs 5,000 and every year you top up the SIP amount by 10%. In this way, you will have to increase the amount in your current SIP by 10% every year. You will have to increase it and with this trick, you will accumulate a huge fund in a few years. Understand how-

Understand with an example.

Suppose you started a SIP of Rs 5,000, then deposited Rs 5,000 every month for one year. Then next year you have to increase it by 10% of Rs 5,000, that is Rs 500. In this way, your SIP for the next year i.e. the second year will become Rs 5,500. Then the next year i.e. the third year, you will have to increase 10 percent of Rs 5,500, that is, Rs 550. In this way, your SIP will become Rs 6,050 in the second year. In this way, you have to increase the current SIP by 10 percent every year.

Now know how to become a millionaire in 20 years with Step-Up SIP?

If you choose the option of Step-Up SIP and aim to add 1 crore rupees in 20 years, then you will have to start investing in it from Rs 5,500. Run an SIP of 5,500 for 1 year, after this keep applying top-up every year at the rate of 10%, as told in the example above. In this way, your total investment in 20 years will be Rs 37,80,150. On this, you will get a return of Rs 64,67,111 and in 20 years you will become the owner of Rs 1,02,47,261.

Also, understand this thing.

SIP is a market-linked scheme. Through this, investment is made in mutual funds. In such a situation, you have to keep in mind that the return of SIP is also market-based. Meaning, the return cannot be guaranteed in this. However, experts believe that the average return of SIP in the long term is around 12 percent, based on which we have done this calculation. But this return can be more or less depending on the market.

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