20x20x20 SIP recipe: Rs 20,000 monthly SIP investment can provide you with a corpus of nearly Rs 5 crore in 20 years
20x20x20 SIP Formula: 20x20x20 formula represents a monthly dietary investment of Rs 20,000 and 20% annual return for 20 years. In the practical world of investment, it may seem difficult to get these returns, but it is not impossible. If people follow this strategy, they may achieve excellent results, thus creating an investment of nearly Rs 5 crore with an investment of only Rs 4.8 crore. Know how it solves it for you. Before that, let us know how the time SIP returns grows over time.
SIP investment is very convenient
System Investment Plan (SIP) is a method of investing in mutual fund programs where investors can invest regularly in fixed amounts, such as daily, weekly, monthly, quarterly, semi-year or annually. SIP can be started at Rs 100 in mutual fund schemes.
Join SIP
This is a bite, and you can increase the amount of investment as your income increases. You can raise a fixed percentage, such as 5% or 10% every six months or a year.
Long-term SIP investment
Investment periods play a key role in developing your corpus in dietary investments. Due to complex growth, longer periods will lead to rapid growth in investment.
Let's take a look at an example
One person starts using Rs 5,000 a month and hopes to do so for 40 years. Let's see what returns they get every 10 years with a 12% annual rate of return.
In 10 years, their investment will be Rs 6,00,000, with an estimated capital gain of Rs 5,20,179 and an estimated corpus of Rs 11,20,179.
In 20 years, their investment will be Rs 12,00,000, with an estimated capital gain of Rs 33,99,287 and an estimated corpus of Rs 45,99,287.
In 30 years, their investment will be Rs 18,00,000, with an estimated capital gain of Rs 1,36,04,866 and an estimated corpus of Rs 1,54,04,866.
In 40 years, their investment will be Rs 24,000,000, with an estimated capital gain of Rs 4,65,65,355 and an estimated corpus of Rs 4,89,65,355.
SIP Investment in Retirement Corpus
SIP investment may be an important part of the construction of the retirement corpus. A person can start using SIP investment and increase investment as income increases.
If a person starts with a monthly investment of Rs 10,000 and increases his investment by 5% per year.
Let's see how much corpus they may generate in 35 years, with a 12% annual gain.
In 35 years, the total investment will be Rs 1,08,38,437, the estimated capital gain will be Rs 7,53,96,711, and the estimated corpus will be Rs 8,62,35,148.
20x20x20 How does SIP formula generate near RS 50 million libraries
In this approach, investors need to invest Rs 20,000 per month, they need to do this for 20 years and get a 20% annual return. Let's look at the corpus they may generate in 35 years.
In 35 years, the total investment will be Rs 48,000,000, with an estimated capital gain of Rs 4,47,23,880 and an estimated corpus of Rs 4,95,23,880.
Is there a 20% long-term return in mutual funds?
Not among most mutual funds, but there are mutual funds such as Japan India Growth Fund, Franklin India Prima Fund, HDFC ELSS Saver Saver Fund and HDFC Flexi Cap Fund, which have been completed for at least 20 years and have been over 20% of their age since they started.
