You will quickly become a millionaire if you understand the SIP in Mutual Funds. Using the unique technique described here, you can invest for 30 years and get a return of more than 10 crores. Follow these three popular mutual fund formulas to do this. Let's learn these equations.
When investing in mutual funds using a SIP (Systematic Investment Plan), one thing to keep in mind is that time is an important factor. Despite market volatility, if one still invests a fixed amount each month, his mutual fund's net asset value will continue to rise. That is, you can collect a huge fund in this manner.
1. First Formula of Investment.
Balwant, a financial counselor, said that there are unique algorithms for investing in mutual funds. The initial equation is 15*15*15. According to this calculation, a person will have a corpus of roughly Rs. 1.02 crore if they invest Rs. 15,000 each month for 15 years at a 15% return. That means you will become rich quickly with this strategy.
2. Second Formula of Investment.
15*15*30 is the second investment formula. According to this method, a person will get Rs. 10.51 crore if they invest Rs. 15,000 each month for 30 years at a 15% return. He will put in Rs. 54 lahks during this time, and the return will rise to Rs. 9.97 crores.
3. A delay of five years can cause a big loss.
It also has a big impact if an investor begins investing when they are 30. But, again, let's use math to understand this.
Assume that the person is 30 years old when the investment is first done. For 25 years, the person makes a monthly investment of Rs 5000. Based on an average return of 12 percent, in this case, he receives Rs 84,31,033 in total at maturity. This person will be 55 years old at this time.
The full term would have been 30 years if the person had begun SIP investments at the age of 25. The last 10 years' data show that SIPs have provided an average return of 15%. However, if we consider an average return of 12 percent in this case, he will receive a total of Rs 1,52,60,066 when the investment matures.
However, if this person had started investing at 25, he would have received Rs. 68 lahks (Rs 68,29,033), which he would not have received if he had begun investing at 30.