If you are planning to become a millionaire in the long run, SIP (Systematic Investment Plan) can be the best option for you. The “7-5-3-1” rule of SIP helps you invest with the right strategy. With proper planning and regular investment, you can build a fund of up to ₹10 crores — not just ₹1 crore. By following this rule, you can easily manage market ups and downs and move closer to achieving your dream of financial freedom.

What is the 7-5-3-1 Rule of SIP?

This is a simple strategy that can help you create not just ₹1 crore, but up to ₹10 crores. Let’s understand how.

Rule 7: Stay Invested for 7 Years

It is most important to stay invested through SIP for a long time. Stay in the market for at least 7 years. Do not get scared by market falls. For example, during COVID-19, the market fell by 40%, yet it later gave very good returns.

Rule 5: Check These 5 Points Before Choosing a Fund

  1. Good Quality Fund: Avoid New Fund Offers (NFOs).
  2. Growth Track Record: Check the fund’s past performance.
  3. Expense Ratio < 1%: Choose a fund with a low expense ratio.
  4. Check Holdings: Look carefully at the portfolio.
  5. Equity Allocation: Understand how much is invested in equity.

Rule 3: Be Ready for These 3 Situations

  • Negative Return Phase: Negative returns of 7–15% are normal in SIP.
  • Irritation Phase: Flat growth for 1–2 years can happen. Stay calm.
  • Panic Phase: Do not panic during big crashes like 2008. Stay invested.

Rule 1: Increase SIP Every Year (Step-Up SIP)

Increase your SIP amount by 10% every year. This is called Step-Up SIP. It helps grow your investment faster. By following this method, you can easily achieve your goal.

Important Advice

  • Consistency and Step-Up are both important for SIP success.
  • Don’t get scared of market falls. Stay invested for the long term.
  • Research well before choosing an equity mutual fund.
  • Always take advice from a financial advisor before investing.