How to turn Rs 1,000 into Rs 1 crore? Know 12x30x12 mutual fund SIP strategy

Mutual fund investments have become a highly preferred choice among investors. In this scenario, many are showing interest in SIP investments. They can quickly earn one crore rupees if they use the 12x30x12 formula.

Mutual fund SIP

SIP is a preferred choice for investing in mutual funds. While linked to the market, it involves less risk than direct stock investments. You can start a SIP investment with just 500 rupees. Moreover, long-term investments offer significant profits.

SIP investment

SIPs help individuals build a large portfolio. This scheme also offers the opportunity to become a millionaire. You can accumulate one crore rupees by starting a SIP plan from Rs.1,000.

12X30X12 Formula

The 12X30X12 formula helps you invest in SIP and become a millionaire. It is essential to clearly understand it before applying this rule to your investments.

The investment amount in this SIP formula should be increased by 12% annually. That is, if you start a SIP at Rs. 1,000, you should increase the investment amount by 12% every year. Thus, after investing for 30 years, you will get a 12% return. This 12x30x12 formula means that if you invest for 30 years with a 12% top-up, you can earn a 12% return.

SIP investment formula

If you start investing Rs. 1,000 following this rule, you need to continuously deposit Rs.1,000 monthly for one year. Next, you should increase the investment by 12% in the coming year. That is, in the 2nd year, you should add an additional 120 rupees and continue the investment at Rs.1,120. Similarly, in the 3rd year, you should increase the investment by another 12%. Accordingly, increase it by 134 rupees and continuously deposit Rs.1,254.

SIP investment to earn Rs 1 Crore

If you follow this strategy for 30 years, your total investment will be Rs.28,95,992. Assuming an average annual return of 12 percent, the capital gain you will receive after 30 years will be Rs.83,45,611. Adding both, your corpus will increase to approximately Rs.1,12,41,603 at the end of 30 years.