SIP Tips: SIP's 12+12+20 formula makes you a millionaire, if you know it, you will never face a shortage of money..

Financial security after retirement is everyone's priority. For this, it is important that financial planning is done in time. SIP (Systematic Investment Plan) in mutual funds is an option in which a large fund can be created by small investments. Especially for those who want to become rich quickly, the 12+12+20 formula of SIP is very effective.

What is the 12+12+20 formula?

The first "12" in this formula represents an investment of ₹ 12,000 every month. That is, if you start an SIP of ₹ 12,000 every month at the age of 30, then by the age of 50 you can become a millionaire. The second "12" represents an estimated return of 12% annually. It is common to get a return of 12% on long-term investment in mutual funds, although it is not guaranteed.

Who is this SIP formula for?

This SIP formula is ideal for those who want to invest with discipline and want to be financially independent before retirement. Its biggest feature is that you do not have to invest a large lump sum amount, but you can create a big fund with a small amount every month. It is important to note that patience and discipline are very important while investing in SIP. Continuing to invest despite market fluctuations is the key to the success of this formula.

Before investing, make a plan according to your needs and goals with the help of a SIP calculator. The right investment at the right time can not only make you a millionaire but can also free you from the tension of money even after retirement.

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