SIP Investment- Want to invest on something which something profitable? Then this article is for you. Especially If you’re a 25-year-old and want to have a corpus worth crores by the time you reach 55, the 20-12-30 SIP formula is for you. This formula not only teaches young people discipline but also provides excellent returns through long-term investment.
What is 20-12-30 SIP formula?
According to this formula, if a 25-year-old makes a monthly SIP of Rs 20,000 and continues this for 30 years, then at an average annual return of 12%, this investment will turn into crores of rupees. Thus, by the time the investor is 55, he or she will have a corpus of Rs 6,16,19,464.
The total investment in this SIP will be Rs 72 lakh over 30 years. However, the effect of compounding is so powerful that this investment will yield a return of over Rs 5.44 crore. This means that the investor’s money will work for them and multiply over time. This is the true magic of compounding.
Young people today often spend a significant portion of their income on expenses and neglect savings. However, starting a SIP early can guarantee future security. It can help achieve goals like buying a house, a car, and educating children, while also building a retirement corpus worth crores.
How to start SIP?
SIP can be started with any reputable mutual fund. Equity mutual funds are considered the best investment option for the long term. Investors can start with ₹500 or ₹1000 and gradually increase the amount. All that is needed is patience and discipline.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.