Crorepati Formula Of SIP: Who doesn’t dream of becoming a crorepati? Everyone works hard to earn money. But if regular investment is done with the right strategy, then even a small saving every month can fulfill your dream of becoming a crorepati. Yes, we are talking about Systematic Investment Plan (SIP), in which with the power of compounding, one can become a millionaire by saving just Rs 9000 every month. Let’s understand its calculation…

It is important to invest the savings in the right place

Everyone saves a part of their earnings for after retirement, so that they do not have to face any kind of financial problem at that stage of age and do not have to depend on someone else for their survival. Your savings can also make you a millionaire, but for this it is important that it is invested at the right place, where you get excellent returns. In this regard, SIP has emerged as the most popular way in recent times and it has given a return of 12-15 percent. Through which it has helped in collecting a huge fund even through small savings. Not only this, the return of many SIPs has been up to 16-18 percent in the long term.

To achieve your goal, remember these 3 things

There are mainly three things that can help you to fulfill your dream of becoming a millionaire through SIP. The first is disciplined and regular investment, the second is the increase in investment over time and the third is the power of compounding. That means sticking to SIP in disciplined investing to achieve your goal, the power of compounding contributes to increasing your investment and return amount manifold over time. At the same time, by increasing your invested amount little by little, you can achieve your goal before time.

Mathematics of becoming a millionaire from ₹9000

Now let’s understand how you can fulfill your dream of becoming a millionaire by saving just ₹9,000 through SIP Investment. So let us tell you that Systematic Investment Plan (SIP) is a long term investment process and the most important thing in this is that along with strong returns on investment, the benefit of compounding is also available on maintaining it for a long period and a huge fund gets accumulated.

You will have to do a regular SIP

You will have to deposit about Rs 300 every day or Rs 9,000 per month and do a regular SIP for 21 years.Now suppose you get only 12 per cent return, then your total investment will be Rs 22,68,000 and the return you get with compounding will be Rs 79,80,068 in this period. Overall, your fund will increase to Rs 1,02,48,068. On the other hand, if the return you get is up to 15 percent, then with this amount invested, your total fund will become Rs 1,59,54,054 crore. You can join the category of millionaires even before 20 years by increasing the amount you invest every month.

Investing at a young age is a profitable deal

Experts say that the sooner you start investing (especially in SIP), the more you can benefit. In today’s era, financial advisors advise investors to do SIP in Mutual Fund, The reason behind this is that investing in mutual funds is very simple. People of any age can do SIP in mutual funds. The power of compounding is behind this. The formula of power of compounding says that investment has to be continued for a long period.