26+12+26 SIP Formula: In how many years, can Rs 26,000 monthly SIP investment grow to Rs 5 crore fund?
26+12+26 SIP Formula Calculation: For a financially secure future, it is important to accumulate some wealth while meeting daily needs. If you also want to invest in SIP mutual funds but are confused about how to invest, then the 26+12+26 SIP formula can be beneficial for you.
26+12+26 SIP Formula Calculation: For a financially secure future, it is important to accumulate some wealth while meeting daily needs. There are many investment options available in the market where you can invest your money and earn good interest. One of these that is popular among investors is SIP mutual funds, but some people find it difficult to invest in them. However, investing in SIP is not that difficult if you are investing strategically. Let us learn about SIP and how strategic investing in it helps in accumulating substantial wealth in the near future.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
What is SIP in mutual funds?
SIP or Systematic Investment Plan allows investors to invest in mutual funds, where they can invest money based on their financial capacity.
Key benefits of SIP
Some of the key benefits of SIP mutual funds include the power of compounding, rupee cost averaging, cost-effectiveness and diversification.
How power of compounding works?
Compounding means you get growth on growth, creating a snowball effect that helps your investments grow exponentially over time.
Want to invest in SIP?
If you also want to invest in SIP mutual funds but are confused about how to invest, then the 26+12+26 SIP formula can be beneficial for you.
What is the 26+12+26 formula?
This formula helps an investor create a wealth of around Rs 5 crore if he/she start investing in mutual fund SIPs and continue for 26 years. Let's understand what it is and how it works.
Decoding 26+12+26 formula of SIP
In the formula -
First "26" - represents a monthly SIP of Rs 26,000.
Second "12" - denotes the annualised SIP returns.
And "26" - signifies the number of years, i.e., one needs to invest in SIP for 26 years.
26+12+26 SIP Formula: How much you need to investment in 26 years?
Using this formula, if you start investing Rs 26,000 every month in a SIP mutual fund and continue for 26 years, your total investment will amount to Rs 81,12,000.
26+12+26 SIP Formula: Calculating expected annualised return
In 26 years, your investment will grow by around Rs 4,17,88,184 in the form of capital gains. It should be noted that the average return rate here is considered to be 12 per cent.
26+12+26 SIP Formula: Calculation to create corpus of around Rs 5 crore
At the end of 26 years, combining your initial investment and the capital gain, you will accumulate an estimated amount of Rs 4,99,00,184.
26+12+26 SIP Formula: Calculation summary
Total Investment: 81,12,000
Expected Capital Gains: 4,17,88,184
Final Corpus: Rs 4,99,00,184
26+12+26 SIP Formula: You may amass Rs 5 crore wealth in 26 years
By following the 26+12+26 formula, you can amass around Rs 5 crore and become a crorepati in 26 years.