Power of SIP: It is not easy to become a millionaire but if you invest a fixed amount every year for a long period then you can become a millionaire too. The power of compounding will work behind this.
ow to Become Crorepati: Who does not like to make money with money but for this it is very important to invest. The younger you start investing, the better your corpus will be in the future. Although becoming a millionaire is not easy, but if you invest a fixed amount every year for a long period, then you can become a millionaire too. The power of compounding will work behind this. The simple formula of Power of Compounding is that the investment goal should be long term.
What is Power of Compounding?
- Interest on the original investment
- Both the amount can be reinvested
- Interest will be available again on the principal amount and interest
- Investment + Interest + Interest + Interest = Compounding
How to make money from 15x15x15?
- Investment – Rs 15,000
- Duration – for 15 months
- Interest – 15%
- Corpus – Rs 1 crore after 15 years
- Total investment – Rs 27 lakh
- Compounding – 73 lakhs interest earned
10 years investment
- Monthly SIP: 10 thousand rupees
- Estimated return: 12% (annually)
- Investment period: 10 years
- Your total investment: Rs 12 lakh
- Total value of SIP: Rs 23 lakh
- Benefit: Rs 11 lakh
15 years investment
- Monthly SIP: 10 thousand rupees
- Estimated return: 12% per annum
- Investment period: 15 years
- Your total investment: Rs 18 lakh
- Total value of SIP: Rs 49.96 lakh
- Benefit: Rs 31.96 lakh
20 years investment
- Monthly SIP: 10 thousand rupees
- Estimated return: 12% per annum
- Investment period: 20 years
- Your total investment: Rs 24 lakh
- Total value of SIP: Rs 98.93 lakh
- Benefit: Rs 74.93 lakh
