Mutual Fund SIP: Mutual fund investments have emerged as a highly favored choice among investors. During this scenario, Indians are opting for SIP investments but are concerned about the investment process.
Related to market risk, but gaining popularity
SIP is now the favored choice for investing in mutual funds. Even though connected to the market, this plan is gaining popularity because it involves less risk compared to investing in stocks directly. You can initiate a SIP with just Rs 500. Furthermore, long-term investments offer the advantage of cyclical growth, aiding individuals in building a larger portfolio. You have the potential to become a millionaire by participating in this program as well. Here is a method for potentially becoming a millionaire by initiating a Rs. 1,000 SIP.
This formula can help you to invest in mutual fund
Investing in SIP with a 12X30X12 formula has the potential to help you become a millionaire. However, it is essential to comprehend the formula before utilizing it for your investments. In this equation, the annual top-up of 12% is represented by the 12, meaning if you begin a SIP at Rs 1,000, you must top up at 12% annually. After holding onto the SIP for 30 years, you will receive a 12% return on the remaining balance. If you begin investing Rs 1,000, you must consistently make monthly deposits of Rs 1,000 for one year.
Next, raise the SIP by 12% which equals Rs 120 in the upcoming year, resulting in a total SIP of Rs 1,120. Following that, perform 1,120 SIP every month for the entire year and raise the sum by 12% in the following year. 134 is what 12% of 1,120 amounts to. In the third year, your SIP is projected to be Rs 1,254.
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