How you can accumulate up to 3 crores by starting investing in SIP with ₹2,000. Just 1 formula will do wonders. Understand it through calculations here.
Becoming a millionaire seems like a dream to everyone, but through SIP Mutual Funds you can easily fulfill this dream. If you start investing in it with just ₹2,000, you can secure your old age and make yourself a millionaire with long term investment. However, for this you will have to adopt a special formula. Know here how you can accumulate up to 3 crores by starting investing in SIP with ₹2,000.
This formula will be useful
To accumulate a fund of 3 crores, you will have to adopt the formula of 10/35/12. In this formula, 10 means 10 percent top-up. It means you have to start investing with 2000 rupees but you have to top-up 10% annually. 35 means 35 years of SIP and 12 means 12% return. It means if you start SIP with 2,000 rupees, top-up 10% annually and continue SIP in this sequence for 35 years and if you get 12 percent return on it, then you will be the owner of 3 crore rupees in 35 years.
Understand it through calculation
Suppose you started with 2,000 rupees at the age of 25. From the next year, I started applying a top-up of 10% on it. For example, I deposited Rs 2,000 every month for one year. After one year, I increased it by 10% of 2,000 i.e. Rs 200, so the amount became Rs 2,200. Next year, I increased it by 10% of 2,200 i.e. Rs 220. In this way, in the third year, your SIP became Rs 2,420. In this way, every year you have to keep adding 10% of the current amount to the SIP.
In this way, in 35 consecutive years, you will invest a total of Rs 65,04,585. If the return is calculated at the rate of 12%, then you will get Rs 2,50,25,068 only from interest. In this way, your total corpus will be Rs 3,15,29,653. Let us tell you that the average return of long term SIP is considered to be around 12%, hence the calculation here has been done on the basis of 12% return.
(Disclaimer: Investments in mutual funds are subject to market risks. Do your own research or consult your advisor before investing.)
