Sip: If you are young and want to save money for the future, then the 12-12-25 formula of mutual fund SIP can be a great way for you. This is an easy and effective method that helps you get good returns by investing longer. The purpose of this formula is to convert your small savings into a safe and beneficial investment, so that your money can increase over time and you can achieve your financial goals.
What is SIP’s 12-12-25 formula?
SIP i.e. Systematic Investment Plan is a way that you can make big money by investing small amount regularly. This formula is quite easy and can start it. In this:
- 12: SIP of Rs 12,000 every month.
- 12: An average return of 12 percent returns every year.
- Investment starts at the age of 25: 25 years.
The sooner you start investing, the more benefit will be. By adopting this formula, you can make up to Rs 2 crore in 25 years. Yes, by investing properly, you can prepare funds up to Rs 2 crore till your 50th year.
How will there be a fund of Rs 2 crore in 25 years?
If you invest Rs 12,000 every month and you get a return of 12 percent on an average, then your investment can increase to Rs 2 crore in 25 years. This is a great way to add money for long periods. In addition, this formula can give you low risk and good returns, which will keep your investment safe.
Benefits of sip
- Simple investment: Investing in SIP is very easy. You can withdraw some amount from your savings and deposit it every month.
- Benefits in the long term: The more year you invest, the more you will get the return. Your investment will increase over time.
- Flexibility: Another special thing about SIP is that you can also increase your investment amount from time to time. You do not have any kind of compulsion.
What should be kept in mind?
Since SIP is connected to the stock market, it can cause fluctuations. But this risk can be reduced by investing for a long time. You may also have to pay tax on the returns from SIP, which is called Capital Gains Tax.
conclusion
The 12-12-25 formula of SIP is the easiest and safe way to create a good fund in the future. If you follow it properly then you can prepare an amount of millions in 25 years. The sooner you adopt this formula, the more benefit you will benefit. So, what is the delay? Start your SIP today and prepare a strong fund for the future.
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