It is everyone’s dream to become a millionaire, 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 a long-term investment.
However, for this, you have to adopt a special formula. Know, how you can add up to Rs 3 crore by starting investing in SIP from ₹ 2,000. Do you also want to know how you can become a millionaire with this formula? So let’s know.
Know, how to reach the target of 3 crores
To add a fund of Rs 3 crore, you have to adopt the formula of 10/35/12. In this formula, 10 means 10 percent top-up. This means that you have to start investing with Rs 2000 but you have to put a 10% top-up in it annually.
35 means 35 years of SIP and 12 means 12% return. Meaning if you start a SIP with Rs 2,000, apply a 10% top-up annually, and continue the SIP like this for 35 years and if you get a 12% return on it, then you will own Rs 3 crore in 35 years.
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Know how your investment will grow
Suppose you started with Rs 2,000 at the age of 25. From the next year, you started applying a top-up of 10% on it like you deposited Rs 2,000 every month for a year, and after a year you increased it by 10% of 2,000 i.e. Rs 200, so the amount became Rs 2,200, next year you increased it by 10% of 2,200 i.e. Rs 220, this way in the third year your SIP became Rs 2,420. In this way, every year you have to add 10% of the current amount to the SIP.
In this way, you will invest a total of Rs 65,04,585 in 35 consecutive years. If the return is calculated at the rate of 12% on this, you will get Rs 2,50,25,068 from interest only. In this case, 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%, so the calculation here has been done according to a 12% return.
This formula to become a millionaire through SIP mutual funds is a great opportunity for those who are ready for long-term investment. However, it requires patience and discipline.
By making a 10% top-up annually and investing continuously for 35 years, you can achieve the target of Rs 3 crore. It is important to note that mutual fund investments are subject to market risks, so assess your financial situation and risk tolerance before investing.
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