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Systematic Investment Plan Can Make you a Crorepati

Crorepati Through SIP

So we all want to be a crorepati. Isn’t it? But how to become a crorepati without any extra effort or without any extra toil. Do you know by doing the proper financial planning and managing your existing wealth you can become a crorepati within a short span of time? One of such planning is a systematic investment plan OR SIP. This post I will discuss how to become a crorepati from small investments.

Roadmap To Crorepati

  • Invest systematically.
  • A systematic investment plan will be able to make a big difference even with the smallest amount of savings.
  • But will SIP be possible without a regular income source?
  • Yes, it will be possible to save systematically to save even without a regular income. That is the power of compounding.
  • The thumb rule is to start early and invest regularly.
  • Start your Mutual Funds SIP today.
Systematic Investment Plan

Can Compounding Effect Really Multiply Our Investments?

  • Yes, it can, because every bit of investment compounded over a long period of time can create wonders.
  • So start today with SIP, choose your scheme, invest the right amount and become a crorepati.
The Compounding Formula
The Compounding Formula

What Is Systematic Investment Plan?

  • SIP means investing a fixed amount every month.
  • Rs. 40,000 SIP every month from July 2007 – Jun 2017, total amount invested Rs. 48,00,000. Today its value is 1,01,58,049.
  • So a person investing Rs. 40K every month has become a crorepati in the last 10 years.
The Compounding Effect

In the above example, I have tested investment in a well known mutual fund HDFC Top 200 Fund (Growth Plan).

Why Is Systematic Investment Plan So Successful?

  • SIP is invested in all market conditions both in the UP market as well as in the DOWN market.
  • So the average value of a SIP investment become average of the UP and DOWN markets.
  • An investor investing in SIP can book his profit in a UP market because the average invested value will always generate a decent profit finally when the market becomes UP.

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