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SIP: Everyone saves from their earnings and wants to invest it in a place with great returns. Mutual fund SIP is a great option in this case. It has given good returns to investors in the long term and has also proved helpful in fulfilling the dream of becoming a crorepati. However, to achieve this goal, SIP investment has to be done under a special formula. This formula is 10X21X12, let's see how it works?

Benefits of compounding-
SIP (Systematic Investment Plan) is an excellent long-term investment method. In this, you invest a fixed amount every month. The biggest advantage of SIP is that you get the benefit of compounding, due to which your investment increases manifold in the long run. If you invest ₹ 10,000 every month, then through SIP, you can achieve the goal of becoming a crorepati.

Strong returns on SIP in the long term-
Before investing in the stock market or mutual funds, it is important to understand that these markets are subject to risks and there can be fluctuations in returns; that is, your actual return can be less or more. However, if we look at the history of SIP, it has given investors a return of 10-15 percent or more. Not only this, but the return of many SIPs has been up to 18-20 percent in the long term.

How to work the 10X21X12 formula-
Now let us tell you about this 10X21X12 formula, so the first digit, i.e., 10, means that you have to save Rs 10000 from the income you earn every month. Now let's talk about the second digit 21, the 10 thousand rupees you have saved every month, you will have to invest it regularly in a SIP for 21 years.

The next number is 12, and this is for the average return. Although in the long term, SIP investment gives a return of 18-20 percent, here we are assuming an average return of 12 percent, but even this much return can make this saving a fund of more than 1 crore rupees.

This is the complete calculation to become a millionaire-
If you calculate through the SIP Calculator, then if you invest in SIP for 21 years by saving 10 thousand rupees every month, then according to 12 percent annual average return, you will invest a total of Rs 25,20,000 in this period. But the return you get with compounding will be Rs 88,66,742. In this way, your total fund will become Rs 1,13,86,742. On the other hand, if you apply it for just 15 years instead of 21, then you will get a fund of Rs 50,45,760 on an investment of Rs 18,00,000.

SIP accounts reach close to 9 crores-
In June 2024, the Indian mutual fund industry set a new record in Systematic Investment Plan (SIP). According to data from the Association of Mutual Funds in India (AMFI), investors invested Rs 21,262 crore, up from Rs 20,904 crore in May. The total number of SIP accounts also increased to 8.98 crores, reflecting the growing popularity of SIP among retail investors.

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