The dream of becoming a millionaire will be true, know this magical formula of SIP

News India Live, Digital Desk: Mutual Fund SIP: Everyone dreams that he has a lot of money, he becomes a millionaire and fulfills all his dreams. We often feel that becoming a millionaire is just a big businessman or a lottery, it is a matter of their bus. But it is not true.

Today we are going to tell you about such a ‘magical’ method, so that you too can become a millionaire by saving a little bit every month. The name of this magical way is – SIP (Systematic Investment Plan).

What is SIP and its ‘magic’?

SIP is a way to invest in mutual funds. It is exactly like the bank’s RD (recurring deposit), in which you deposit a fixed amount every month. But here your money is not in the bank, but in places like the stock market through mutual funds, where there is more chances of getting returns.

SIP has real magic ‘Power of Compounding’ (Power of Compounding)Which is called the world’s great investor Warren Buffett ‘Eighth Ajuba of the world’. It means simple means – Get interest on your interest as well. It is like a small ice circle, which gradually becomes so big that you cannot imagine, rolling from the mountain.

Let’s understand from an example:

Suppose you are 25 years old and you are just every month 5,000 rupees Let’s start SIP

• Investment every month: ₹ 5,000

• Investment duration: 30 years (when you are 55 years old)

• Estimated annual return: 15% (usually can get so much return from equity mutual funds in a long time)

Now see the magic:

• Your total investment will be in 30 years: ₹ 5,000 x 12 months x 30 years = 18 lakh rupees

• But after 30 years of return and compounding strength, you will have a total amount after 30 years: almost 3.5 crores!

Yes, you deposited only Rs 18 lakh, but interest on your hard earned money also earned interest and made a profit of Rs 3.32 crore for you, which made your treasure Rs 3.5 crore.

Mantra of success:
Short Savings + Tall Time + Regular Investment = Big Treasure

One important thing: However, it is important to remember that returns in mutual funds are subject to market risks and have no guarantee. But in the long run, it is an excellent and tried way to make money.

So you do not need to wait for any lottery to become a millionaire. Just start a small SIP from today and let it walk with patience.

Fixed Deposit: Not only interest, these 4 great benefits are available on FD, do you know