SIP Tips: If you want to do SIP then definitely try this 'secret' formula, your money will double..

SIP Top Up: The craze of Systematic Investment Plan (SIP) investment in mutual funds is increasing rapidly. Small investments through SIP pave the way for big benefits. Recently, investment through SIP has reached the figure of ₹ 17,000 crores. But do you know that you can double your corpus with top-up SIP as compared to regular SIP? Today we will tell you a new formula for top-up SIP, which will take your investment to the next level.

What is the formula of top-up SIP?

Top-up SIP is a facility in which you can increase your SIP by a fixed percentage every year. As your salary increases, your SIP can also increase in the same proportion. This makes the effect of compounding even better. Let's understand this through calculation:

SIP Calculation: Regular SIP

Monthly SIP: ₹10,000
Tenure: 20 years
Estimated return: 12%
Total investment: ₹24 lakh
SIP value after 20 years: ₹99.91 lakh
Estimated profit: ₹75.91 lakh

SIP Calculation: Top-up SIP

Monthly SIP (start): ₹10,000
Tenure: 20 years
Estimated return: 12%
SIP top-up every year: 10%
Total investment: ₹68.73 lakh
SIP value after 20 years: ₹1.99 crore
Estimated profit: ₹1.30 crore

Why is top-up SIP better?

1. Magic of compounding: Top-up SIP gives you better benefits of compounding.

2. Goal achieved quickly: You can achieve your financial goals faster as compared to regular SIP.

3. Investment will also increase with salary: As your income increases, your investment will also increase.

Financial advisor Amit Nigam says that investing in SIP is the safest and most effective way to create long-term wealth. But top-up SIP makes this journey even easier. By increasing small amounts every year, your corpus grows rapidly. Especially when the market outlook is better, this formula can prove to be a game-changer for you.

Disclaimer:
Investing in mutual funds is not being advised here. Consult your financial advisor before investing.