Money Tips: You can become a millionaire by doing SIP of ₹7,000 every month, know how and in how many days?

How to Become A Crorepati with a 7000 Investment: Planning for a financially secure future is very important, and an effective strategy is to take advantage of compounding through systematic investing. If you invest ₹7,000 every month in a SIP, you can accumulate a corpus of ₹1 crore over time. In this article, we are telling you how you can do this. Know:

Understand the power of compounding:

Compounding is a process in which the returns on your investment start earning on their own. It is also called 'interest on interest', and over a long period of time, this effect can multiply your initial investment. The longer the investment period, the greater the benefits of compounding.

How to save and make money through SIP:

Through SIPs, you regularly invest a fixed amount in mutual funds. This promotes disciplined investing. This method not only reduces the impact of market volatility but also helps investors effectively use the benefits of compounding.

How to create ₹1 crore by investing ₹7,000 every month in SIP?

Let us understand how a ₹7,000 monthly SIP can create a corpus of ₹1 crore. Let us assume an annual return rate of 12%, which is a reasonable estimate based on the historical performance of equity mutual funds.

Investment period: Approximately 22 years

Total investment: ₹18,48,000

Estimated return: ₹81,52,000

Total corpus: ₹1,00,00,000

These figures show that with regular monthly investments and the assumed return rate, it is possible to create a corpus of ₹1 crore in approximately 22 years.

The earlier you start, the greater the benefit
The duration of your investment plays an important role. Starting early gives your investment more time, which increases the benefit of compounding. For example:

Start at age 25: ₹1 crore at age 47

Start at age 35: ₹1 crore at age 57

On the other hand, if you want to reach ₹1 crore sooner, you can increase your monthly SIP. For example:

These examples show how adjusting the investment amount can affect the time it takes to reach your financial goals. However, keep in mind that mutual fund investments are subject to market risks and actual returns may vary. Therefore, it is advisable to spread your investments across different asset classes to minimize risk. Evaluate and adjust your investment portfolio from time to time according to changing financial goals and market conditions.
Disclaimer: This article is for information purposes only and does not constitute financial advice. Investments in mutual funds are subject to market risks. It is advisable to consult a certified financial advisor before making any investment decision.

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