Mutual Fund SIP: Mutual fund SIP has fulfilled many dreams of many people and will continue to do so in future also. According to AMFI data, SIP has been giving good returns in the long run for the last several years. To truly enjoy SIP, it should be run for as long as possible.
morning comes when you wake up
If for any reason you could not start SIP earlier then there is nothing to regret about it. There is also a saying that it is morning only when you wake up. That means, if you have not started SIP yet and your age is around 40, then you can still start SIP and create a fund worth crores of rupees till your retirement.
Fund worth crores of rupees will be prepared from 40x20x50 formula of SIP.
Through the 40x20x50 formula of SIP, you can start SIP at the age of 40 and create a fund of Rs 5 crore by the age of retirement i.e. 60. In the 40x20x50 formula of SIP, 40 means the age to start SIP, 20 means investment up to 20 years and 50 means SIP of Rs 50,000 per month. If you start investing by following this formula, then after 20 years i.e. when you turn 60 years old, you can accumulate a fund of Rs 5 crore.
A fund of Rs 5 crore will be ready in 20 years
If you get an estimated average return of 12 percent every year for 20 years, then with this investment you can create a fund of Rs 5 crore in 20 years. If during this period you get an estimated return of up to 14 percent instead of 12, then after 20 years you can have a fund ready up to Rs 6.5 crore.
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