12x12x20 SIP Formula. In today’s economy, people want to increase their means of earning. If you are doing business, then you think of getting a huge return by investing in a job. If you also dream of becoming a millionaire in the future, along with a job, then you can adopt this formula of SIP. By investing in an SIP mutual fund, you can get a bumper 12% annual return and can become a fund of crores in 20 years. However, if you use this formula in a disciplined way, then the benefit of compounding is received quickly, and financial freedom does not require working for more days.

If you have got a new job, from which you want to grow your money by investing. Then you should invest in such a special scheme that is directly linked to the stock market. Here we are telling you to start SIP in a mutual fund according to your investment goal. SIP (Systematic Investment Plan) can be a better option for you. Here we are giving information about the 12x12x20 formula of SIP.

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Know what SIP is

Actually, before knowing about the 12x12x20 SIP Formula, you should know about SIP. A Systematic Investment Plan is a disciplined and easy way to invest in mutual funds. In this type of scheme, investors invest a fixed amount in a fund every month.

Let us tell you that investment is done in small parts through SIP. This investment remains linked to your stock market, which balances the effect of fluctuations. However, it is beneficial for those who invest for a long time, because the benefit of compounding is available.

12x12x20 SIP Formula

The 12x12x20 formula of SIP is a great option for you. By investing Rs 12,000 every month in mutual funds and getting a 12% annual return, a big fund can be made in 20 years. Here, this formula gives the benefit of compounding; however, you need to invest in a disciplined manner.

For example, let’s assume that you are 30 years old and want to start your investing journey. You should leave Rs 12,000 from your salary every month to invest in mutual funds. When you deposit Rs 12,000 every month, you will get the benefit of compound interest of about 12% per annum on your deposit. This investment will have to be made regularly for about 20 years.

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This is how you can create a fund of Rs 1 crore.

By doing SIP of Rs 12,000 every month, about Rs 28.80 lakh will be deposited in your fund in the next 20 years. Now, let’s assume compound interest of 12% per annum on this money, and you will get about Rs 81,58,288. During this time, the amount deposited by you will be Rs 28.80 lakh, and the interest amount will be Rs 81,58,288, which, on adding, will be around Rs 1,10,38,288 in your account. You will have an amount of more than Rs 1 crore in 50 years. With which you can do big work.