SIP Tips: How to become 'rich' through SIP in 10 years, complete chart from investment to returns..

If you want to start your journey to wealth with small savings, then a SIP is going to be a great option. By investing a small amount every month, you can create a big fund with the power of compounding. There is neither much hassle in SIP nor is there much risk. It is a disciplined and smart way of investing, which can take you to financial freedom. So, know how many SIPs will create a fund of ₹ 1 crore and how to become rich in 10 years.

SIP will make you a millionaire

SIP is considered the best option for investment because by investing in it for a long period, you can create a strong fund for yourself. SIP is especially best for those people who have the ability to take a little risk and can invest for the long term. So if you start a SIP of ₹ 40,000 every month, then in just 10 years, you will have a fund of one crore.

You will have to invest 40,000
If you want to become a millionaire in just 10 years, then you will have to invest a huge amount of funds in a SIP, i.e., Systematic Investment Plan. Yes, if you do a SIP of ₹40,000 every month and continue it for 10 years, then you can create a fund of 1 crore by getting an annual return of 15% on it.

Return calculation
If you want to become a millionaire in just 10 years with a SIP of 40,000, then for this, you should get at least a 15% annual return. Because, based only on annual return, the maturity fund can make you a millionaire.

What should be your monthly salary for a SIP of ₹40,000?

Do you want to start a SIP of ₹40,000 every month? So, for this, you should invest about 20% to 30% of your monthly salary in an SIP. So, if you invest 20% of your income in a SIP, then your monthly salary should be at least around ₹2 lakh for a SIP of ₹40,000. That is, to invest ₹40,000 in SIP, your monthly salary should be at least ₹2 lakh, if you are investing 20% of your income. This calculation also depends on your monthly expenses, debts, and financial goals.

Understand the complete investment calculation.
If you invest ₹40,000 in SIP every month and continue it for 10 years, you are on pace to become a crorepati. If you get an average annual return of 15% on the total investment of ₹48,00000 (48 Lakhs), then your wealth can reach ₹57,20727 (57.2 Lakhs). On maturity, you will get a fund of about ₹1,0520727 (1.1 Crores). That is, this habit of disciplined investment can open the door to your financial freedom.

You will become a millionaire before retirement.
So if you are 40 years old now and you start investing a fixed amount in SIP every month, then you can become a millionaire by the age of 50. That is, you will become completely financially self-reliant even before retirement. But starting on time is the key to real success.

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