When SIP Multiplies Money Faster: The 8-4-3 Rule

When SIP Multiplies Money Faster: The 8-4-3 Rule

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Mutual Fund SIP helps in compounding investors’ wealth in the long term. But the real action takes place towards the end.

Mutual Fund SIP helps in compounding investors’ wealth in the long term. But the real action takes place towards the end.

It is always said that one should remain patient and invested for a long period to reap the full benefit of SIP. Here’s a reason why this strategy works.

It is always said that one should remain patient and invested for a long period to reap the full benefit of SIP. Here’s a reason why this strategy works.

According to a report by FundsIndia, it takes 8 long years to reach the first Rs 50 lakh if someone is investing Rs 30,000 per month and the annual return is 12%.

According to a report by FundsIndia, it takes 8 long years to reach the first Rs 50 lakh if someone is investing Rs 30,000 per month and the annual return is 12%.

However, it takes only four years to add another Rs 50 lakh. For the next Rs 50 lakh, it takes only 3 years.

However, it takes only four years to add another Rs 50 lakh. For the next Rs 50 lakh, it takes only 3 years.

Interestingly, if the investor remains invested for 20th year, he/she can add Rs 50 lakh every year.

Interestingly, if the investor remains invested for 20th year, he/she can add Rs 50 lakh every year.

Similarly, if someone invests Rs 50,000 per month and annual return is 12% then it takes 8 years to reach the first Rs 80 lakh.

Similarly, if someone invests Rs 50,000 per month and annual return is 12% then it takes 8 years to reach the first Rs 80 lakh.

However, another Rs 80 lakh is added in just four years and another in just 3 years. By 20th year, this investor can add Rs 80 lakh almost every year.

However, another Rs 80 lakh is added in just four years and another in just 3 years. By 20th year, this investor can add Rs 80 lakh almost every year.

Disclaimer: This content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.

Disclaimer: This content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.