If you dream of becoming a millionaire, then you can fulfill this dream by starting investing with just ₹ 1,000. However, to become a millionaire, you will have to use a special formula. Here understand about this formula and the way to use it.
SIP has become a favorite investment option nowadays. Through this, investment is made in mutual funds. Despite being market linked, this scheme is becoming increasingly popular. The reason for this is that the risk in it is less than investing money directly in shares. You can start SIP with a small amount of Rs 500. Apart from this, in the long term, you get a good benefit of compounding in this scheme, due to which a person can create a big corpus. If you want, you can also make yourself a millionaire through this scheme. Here know the formula under which you can make yourself a millionaire by starting a SIP of just ₹1,000.
12X30X12 formula will make you a millionaire
The 12X30X12 formula in SIP can make you a millionaire. Before applying this formula, you have to understand it. In this formula, 12 means annual top-up of 12%. Meaning if you start SIP with 1,000 rupees, then you have to apply top-up at the rate of 12% every year. 30 means up to 30 years, meaning you have to run the SIP for 30 years and the second 12 means the 12% return on SIP.
Now know how the formula will make you a millionaire
Suppose you start investing in this scheme with 1,000 rupees, then you will have to invest only 1,000 rupees for one year. Next year you will have to increase the amount by 12% i.e. Rs 120. Now your amount will increase to Rs 1,120. Run a SIP of Rs 1,120 every month for the whole year and increase it by 12% again next year. 12% of 1,120 will be Rs 134. In this way, your SIP will be Rs 1,254 in the third year.
In this way, you have to increase the current amount by 12% every year. In this way, the SIP has to be continued for 30 years. Since a person’s income also increases with time, it will not be a difficult task for him to apply a top-up of 12 percent. In this way, your total investment in 30 years will be Rs 28,95,992. On this, you will get Rs 83,45,611 at the rate of 12 percent return and after 30 years the maturity amount will be Rs 1,12,41,603. In this way, you will make yourself a millionaire with this formula.
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