Financial Tips: Child is younger than 3 years… Millionaire will be done on the way to college, this formula will work! – How to build a corpus of 1 Crore for your child this 15 years Financial Planing will help here are three ways tutc
Everyone invested some of their earnings, saving (saving) and invests it in a place where he gets good returns and does not have to face the crisis of money in future. Along with this, the family saves money by keeping some similar thinking about their child’s future. If your child is still 3 years old or smaller and wants to become a millionaire while going to college, then you will have to do financial planning from now on. SIP power can be useful in getting this target, through which a fund of 1 crore can be collected in 15 years. Let’s know about it from details …
Planning is necessary in increasing expenses over time
To avoid future financial problems, saving and financial planning is very important. There has been an old tradition of savings in India anyway. However, over time the needs are changing rapidly and expenses are also increasing. Especially the expenses of children’s education have increased a lot with time. Keeping all these things in mind, if you want something to be saved in such a way that after some time a fund of at least 1 crore is collected, then SIP can be useful for you. Let’s assume that your child is 3 years old, then 15 -year financial planning will be right for him. So that you will not have to take tension for his education fees. However, while doing such planning, it is also important to keep in mind that the value of 1 crore is not the same after 15 years.
The target will be met through SIP
SIP has emerged as the most popular way to prepare a thick fund for the future, ie cystic investment plan, it has an important role of compounding power, which helps to collect fat funds with great returns. Significantly, the great scientist Albert Einstein also used to describe compounding as surprise. According to them, what he understands, he earns it and those who do not understand it, they pay the price. SIP is also a manner of compounding with returns on investment.
Let us know here that the Systematic Investment Plan (SIP) is a long -term investment process and the most important thing in this is that along with strong returns on investment, there is also the benefit of compounding on maintaining it for a long period. If you look at the history of returns on investment, then investors have got 12 to 18 percent returns. To raise a fund of 1 crore for the child, you will have to invest Rs 16500 every month in SIP for 15 years and suppose you also get a return of 15% on it, then your deposit will be Rs 29.70 lakh, while you will get Rs 1,01,70,032.
This formula to raise 5 crores
A fund of Rs 5 crore can also be raised in SIP not only one crore but also a formula. According to a report by Fund’s India REASERCH, if you invest Rs 30,000 per month and invest in SIP and increase it by 10 % every year, then you can collect Rs 5 crore in 19 years if you get a return of 12 per cent every year. The special thing is that you will get the first 50 lakh rupees of this big fund during 7 years of investment.
1 crore can be deposited in just 10 years
Your fund will be connected beyond this ratio, although the time will continue to decrease in it. If SIP investment continues with this formula, then it will take only 3 years to deposit 50 lakh rupees in your fund and the third is just 2 years for 50 lakhs. It is clear that you will deposit Rs 1 crore in 10 years through the return of Rs 30,000 and an annual increase of 10 per cent in the annual rate of Rs 10 per cent. By the 19th year, your deposit will be Rs 5 crore with compounding.
(Note- Before making any investment, take advice from your financial experts. It is necessary to do Proper R&D before putting money anywhere, because some risk are associated with every investment.)
