Sip magic: how the 10x12x50 formula can make you a crorepati
Systematic investment plans (sips) are one of the simplest and most effective ways to create wealth. But many investors in india don’t know the power of the 10x12x50 formula. Here’s how it works and how you can become a crorepati.🔢 1. Understanding the 10x12x50 formulaThe formula breaks down as follows:10 – number of years of investment12 – number of months in a year50 – investment amount in thousands per month (Rs 50,000)Example: investing Rs 50,000 per month for 10 years through sip can grow significantly with compounding.📈 2. How the power of compounding worksAssume 12% annual return from equity mutual fundsMonthly contributions compound over time, generating exponential growthEven though you invest Rs 60 lakh over 10 years, the total corpus can cross Rs 1.12 croreCompounding is the real wealth multiplier in sips.💡 3. Benefits of the 10x12x50 sip approachDiscipline: investing monthly ensures financial consistencyRupee cost averaging: smooths market volatility impactLong-term growth: capitalizes on market growth over 10 yearsFinancial goal achievement: helps in retirement planning, education, or buying a house🏦 4. Getting started with sipChoose equity mutual funds with a consistent track recordSet up a monthly auto-debit for Rs 50,000Review performance annually but avoid panic selling during market dipsPatience is key — the formula works best when followed diligently for 10 years⚠️ 5. Important considerationsEnsure you can afford Rs 50,000 per month without financial strainDiversify across multiple funds or sectors to reduce riskReturns are not guaranteed; 12% is an estimated historical average✅ 6. Key takeawayThe 10x12x50 sip formula demonstrates the power of disciplined investing and compounding. By investing Rs 50,000 monthly for 10 years at a reasonable 12% return, you could accumulate over Rs 1.12 crore. This simple, legal, and systematic approach can turn ordinary investors into crorepatis over time.
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Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.