Mutual fund SIPs can create a large corpus over a long period of time.
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Here we will learn how to create a corpus of Rs 1 crore from a SIP of Rs 1000 through a step-up formula.
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After starting SIP from Rs 1000, you have to increase by 10% every year, i.e. increase the SIP amount by 10%.
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If you continue investing with this formula and earn an average expected return of 12 per cent annually, you will earn Rs 1.01 crore in 31 years.
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If you get an average expected return of 15 per cent with this strategy, then you will have a corpus of Rs 1.08 crore in 28 years and Rs 1.50 crore in 30 years.
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Remember that to achieve this goal, you have to keep investing relentlessly and also keep taking steps.
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Next: If you deposit ₹ 5,00,000 in 400 days FD in Union Bank, how much money will you get at maturity?
