How to turn your Rs 1,000 into Rs 1 crore with 12x30x12 SIP strategy?

SIP (Systematic Investment Plan) is an excellent 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.

SIPs help individuals build a large portfolio. This plan also offers the opportunity to become a crorepati. By starting a SIP plan with Rs.1,000, you can accumulate one crore rupees.

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

In this SIP formula, the investment amount should be increased by 12% annually. That is, if you start a SIP with Rs. 1,000, you should increase the investment amount by 12% each 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.

If you start investing Rs. 1,000 following this rule, you need to continuously deposit Rs.1,000 per month 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 by 134 rupees and continue to deposit Rs.1,254.

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.