Are you planning to invest somewhere, or have you already done so? But not getting the return as you want? Then today’s article is just for you. Today we are going to discuss one formula that will change your whole strategy. Today we are talking 8-4-3 investment formula. Yes, you’ve heard it right.
Follow the 8-4-3 Formula
Many people follow the 8-4-3 formula to get great returns and invest in the right way. By investing in it, you can get a minimum return of up to 12%. This formula is quite simple. According to the formula, you should invest in a scheme that gets compound interest annually. In today’s time, there are many schemes in the market that are offering compound interest.
In how many years will you become a millionaire?
If you invest Rs 21,250 every month in this scheme, then in 8 years the fund will be Rs 33.37 lakh. This is the first step to becoming a millionaire. Now again, with the help of compound interest, you will raise Rs 33.37 lakh in the next four years, and then in just 3 years, your fund will add Rs 33 lakh. In this way, in just 15 years, you will become a millionaire through the 8 + 4 + 3 rule.
Similarly, if you keep depositing Rs 21,250 every month for 6 years even after 15 years, then in 21 years you will have a fund of Rs 2.22 crore.
Amazing Compounding Interest
Compounding interest is a major contributor to creating a large fund with the 8-4-3 formula. Albert Einstein described compound interest as the eighth wonder of the world. Actually, there are two ways to earn interest on an investment. One is simple interest, and the other is compound interest. In simple interest, interest is earned only on the principal, i.e., the investment amount. At the same time, compound interest is earned on the principal, and then that interest is added to the principal. In simple language, it also earns interest on interest.
