Mumbai: Investment is very important for everyone. No matter what your income is, you should always save a part of it. With small, regular savings, you can build a big wealth over time.
The Formula of Mutual Fund SIP
We are talking about Mutual Fund SIP (Systematic Investment Plan). Even if your salary is low, you can invest small amounts in SIP every month and create a fund worth crores in the long term.
How a Rs 30,000 Salary Can Make You a Crorepati
If your monthly salary is Rs 30,000, you should save at least 15 percent of it, which comes to Rs 4,500. You can use the rest for your expenses.
Now, invest this Rs 4,500 every month in a mutual fund SIP. Along with this, you should also increase your SIP amount by 10 percent every year (called SIP top-up).
Power of Regular SIP Investment
If you keep investing Rs 4,500 every month for 25 years, and increase it by 10 percent annually, you will invest a total of around Rs 53.10 lakh.
At an expected 12 percent annual return, your total fund after 25 years will be Rs 1.77 crore. Out of this, Rs 1.23 crore will be pure profit.
