Power of SIP: 1 crore may sound like a lot right now but not in the near future, the way inflation is increasing. If this amount is not there, you will not be able to live a good life.

Many people think that one crore rupees is a very big amount and they think where will so much money come from, then let me tell you that so much money can come from only one place. This goal can be achieved with the help of Mutual Fund Systematic Investment Plan and Compounding.

How to make 1 crore

Let's understand how you can easily make 1 crore.

To earn Rs 1 crore in 5 years, you will have to invest Rs 1,14,500 at a return of 12%.

If you want a big fund in a short time, you will have to invest a lot every month. But if you invest for a long time, then this is not the case. In the long run, the magic of compounding shows its effect.

If you invest for 15 years and get a return of 12%, then for Rs 1 crore you will have to do SIP of only Rs 16,230.

If you invest for 25 years and earn a return of 12%, then this figure comes down even further to just Rs 3,083 per month.

If you invest for a long period of 30 years and get a return of 12%, then to raise Rs 1 crore, you will have to invest only Rs 1,780 every month.

These figures clearly show that if you give time, you will get the benefit of compounding and will be able to easily create a fund of crores.

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