Mutual Funds SIP: Easy formula to become a millionaire, know the power of compounding, you will become rich..

Compound Interest Investment Tips: Who doesn't want to become rich in today's time? Everyone wants to increase their money through investment so that they can spend their future life comfortably. But how to do money management? How much should one start investing? Often people are not able to understand all these things. Today we will tell you a formula, which will not only solve your problem. But this formula of 15X15X15 is a great way to increase money. It can help you become a crorepati.

This formula is divided into 3 parts - investment, period, and interest. That is, invest 15 thousand every month, for 15 years, at 15% interest. If you start investing with this magic rule, then you can become a crorepati in 15 years. But, another formula also works behind this mathematics. Which is the formula of compounding (Compound Interest Calculator). The Power of Compounding formula teaches that it is very beneficial in long-term investment.

What is the Power of Compounding?

Interest is earned on the original investment and then after this interest is added to the original amount, interest is also earned on it. That is interest on interest as well. In this way, through compounding, your investment can turn into a large amount in the long run. This is the power of compounding. That is, the longer the investment is made, the better we will see the effect of compounding. Use this formula to raise Rs 1 crore in 15 years.

How will money be made from the 15x15x15 formula? (Compound Interest Calculator)

Investment - Rs 15,000 per month (15,000 Rs. monthly investment)

Tenure - 15 years

Interest rate - 15%

Total amount invested - Rs 27 lakh

Through compounding, you will earn Rs 73 lakh in interest in 15 years.

Corpus - Invested amount + Interest earned = 27+73= Rs 1 crore

How to earn 1 crore through mutual funds (How to Earn 1 Crore Through SIP)

If you want to do SIP (Monthly SIP for 1 crore) every month through mutual funds to earn Rs 1 crore, then you will have to invest Rs 10,000 every month. Usually, mutual funds give an annual return of up to 12 percent. In this sense, to earn a fund of Rs 1 crore, you will have to invest for 20 years. In 20 years, you will invest a total of Rs 24 lakh. But, at the rate of 12%, you will get an interest of Rs 74.93 thousand in 20 years.

Meaning, the power of compounding (Compound Interest Investment) showed its power here. In this way, after 20 years, the total value of your SIP will reach Rs 98.93 lakh. And out of this, you would have earned Rs 74.93 lakh only from interest.

Interest on interest increases investment.

It can be understood in this way that reinvesting the earnings you make by investing somewhere is compounding. In this, you not only get interest on the principal amount but also interest on interest. Compounding is a good way to increase your investment manifold in the long run.

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