In the last few years, mutual funds have emerged as a popular option to invest money in the stock market. In addition to lump sum, mutual funds can also be invested through SIP (Systematic Investment Plan). It allows investors to invest small amounts at regular intervals. It has many benefits, making it an attractive option. There are many formulas of SIP, by adopting which the investor can get more benefits. One such great formula of SIP is 12x12x24 to build great funds in a short time.
If you do SIP using this formula, you can become a millionaire in a very short time. Investment made in this way is more beneficial only when it is done early. By investing quickly and continuously, you will get compound interest on the returns, which will help you build a big fund in a short time.
What is the 12x12x24 formula of SIP?
If you want to create a fund of Rs 2 crore at the age of 48 using this formula of SIP, then you have to start SIP from the age of 24. You have to invest Rs 12,000 a month in a company’s mutual fund every month. You have to maintain this investment for the next 24 years. There should not be a mistake in this. Mutual funds get an average interest of 12 to 15 percent. Only if you get 12% return, you will have a large fund after 24 years.
This is how you will earn
If you deposit Rs 12,000 every month from the age of 24 for 24 years, then the total amount of your investment in these 24 years will be around Rs 34.56. Now at the rate of 12% on an investment of Rs 34.56 lakh, you will get around Rs 1,66,16,246 as interest. Now if you add Rs 1,66,16,246 to the total amount of investment 34.56 lakhs, then the investment amount and the amount received as returns will be around Rs 2,00,72,246. The special thing is that this amount will be deposited with you when you are only 48 years old.
