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Even small investments can create huge wealth in the long run, provided the investor maintains the right discipline and time period. It is absolutely possible to create a fund of Rs 1 crore with a daily SIP of just Rs 450, if the mathematics of returns and duration is understood. The power of compounding and the habit of regular investing together turn small contributions into big financial goals.
New Delhi. Creating a corpus of Rs 1 crore by saving just Rs 450 daily sounds difficult, but proper planning and long term SIP can make it easy. Young people dreaming of financial freedom and early retirement are increasingly moving towards such schemes. According to experts, to become a millionaire one does not need a huge amount of money, but rather consistent and disciplined investment is required.
Big fund can be created even with small investment
Mutual fund SIP allows investors to make regular investments in small amounts over a long period of time. In many funds, SIP can be started from Rs 100 per month, although in most schemes the minimum limit is Rs 500 or Rs 1,000. By investing Rs 450 daily i.e. monthly SIP of Rs 13,500, the effect of compounding becomes very strong over time. Small investments have the potential to create funds worth crores in the long run.
How will the target of Rs 1 crore be achieved in 18 years?
According to the calculations assuming 12 percent annual return, a monthly SIP of Rs 13,500 can turn into a corpus of Rs 1,03,33,000 in 18 years. The total investment in this is around Rs 29.16 lakh and the estimated return is Rs 74.17 lakh. This figure shows that it is not difficult to become a millionaire with patience, discipline and long-term investment. However, actual returns may vary due to market conditions and tax rules.
You can earn crores in less time through Step-up SIP
If investors increase SIP by 10 percent every year, then the same target can be achieved in just 15 years. An initial monthly investment plan of Rs 13,500 can grow to Rs 1.17 crore in 15 years with a step-up SIP. The total investment in this is Rs 51.47 lakh and the estimated return is around Rs 65.76 lakh. Experts say that increasing the investment amount as inflation increases is a very wise step. SIP of Rs 450 per day can prove to be an easy and practical way to become a millionaire. The only condition is that investors should continue investing for a long time, there should be no interruptions and maintain discipline in planning. By adopting the right strategy even common investors can easily reach their target of Rs 1 crore.
