Imagine you decide to invest ₹20,500 every month for a period of 8 years in an investment with ROI 12% annually. At the end of this period, your initial investment will have multiplied to ₹33 lakhs.
Over the following 4 years, your investment will double yet again, reaching another ₹33 lakhs. Then, in the subsequent 3 years, it will grow by an additional ₹33 lakhs.
In summary, within a span of 15 years, your initial ₹36 lakhs investment will have grown into a whopping ₹1 crore. This exemplifies the profound impact of time in the world of investing.
It’s important to acknowledge that the purchasing power of ₹1 crore after 15 years will not be the same as it is today due to inflation. To put it in perspective, if you had not invested and simply saved ₹36 lakhs, after adjusting for inflation, it would be equivalent to just ₹13 lakhs.
When considering inflation, the inflation-adjusted value of ₹1 crore will be worth ₹36 lakhs, which is still 2.5 times greater than leaving the money uninvested.
Furthermore, it’s worth noting that there are numerous mutual funds that have historically yielded returns of 15% or more over the long term, making a 12% return expectation a conservative and practical choice for investors….(read more)
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The 8-4-3 Rule | Power of Time in SIP Investments
SIP (Systematic Investment Plan) has gained a lot of popularity in recent years as a disciplined and structured approach to investing in mutual funds. It allows individuals to invest a fixed amount at regular intervals, typically on a monthly basis, in a mutual fund scheme of their choice. One of the key principles that govern SIP investments is the 8-4-3 rule, which highlights the power of time in wealth creation.
The 8-4-3 rule is a simple concept that outlines the potential growth of investments over a period of time. It states that for every 8 years, the money invested in a SIP can potentially double at an annualized return of 15%. This means that if one invests Rs. 10,000 every month in a SIP and earns an annualized return of 15%, the invested amount can potentially double every 8 years. In simple terms, the rule states that the invested amount can potentially double in 8 years, quadruple in 16 years, and octuple in 24 years.
The power of the 8-4-3 rule lies in the compounding effect of time. When individuals invest in a SIP and stay invested for a longer duration, the power of compounding works in their favor. The returns earned on the invested amount get reinvested and start generating returns of their own. Over time, this compounding effect leads to exponential growth in the value of the investment.
For example, let’s say an individual starts a SIP with a monthly investment of Rs. 10,000 at the age of 25. If the investment grows at an annualized return of 15%, by the time the individual is 33, the invested amount can potentially double to Rs. 20,000. By the age of 41, it can potentially quadruple to Rs. 40,000, and by the age of 49, it can potentially octuple to Rs. 80,000. This demonstrates the power of compounding over time and the significant growth potential of SIP investments.
The 8-4-3 rule also emphasizes the importance of staying invested for the long term. The longer the investment horizon, the greater the potential for wealth creation. It encourages individuals to be patient and committed to their investment plan, allowing the power of compounding to work its magic over time.
In conclusion, the 8-4-3 rule highlights the power of time in SIP investments. It demonstrates the potential for wealth creation through the compounding effect of long-term investments. By following a disciplined approach and staying invested for the long term, individuals can harness the power of the 8-4-3 rule to achieve their financial goals and build a substantial investment corpus.
Imagine you decide to invest ₹20,500 every month for a period of 8 years in an investment with ROI 12% annually. At the end of this period, your initial investment will have multiplied to ₹33 lakhs.
Over the following 4 years, your investment will double yet again, reaching another ₹33 lakhs. Then, in the subsequent 3 years, it will grow by an additional ₹33 lakhs.
In summary, within a span of 15 years, your initial ₹36 lakhs investment will have grown into a whopping ₹1 crore. This exemplifies the profound impact of time in the world of investing.
It's important to acknowledge that the purchasing power of ₹1 crore after 15 years will not be the same as it is today due to inflation. To put it in perspective, if you had not invested and simply saved ₹36 lakhs, after adjusting for inflation, it would be equivalent to just ₹13 lakhs.
When considering inflation, the inflation-adjusted value of ₹1 crore will be worth ₹36 lakhs, which is still 2.5 times greater than leaving the money uninvested.
Furthermore, it's worth noting that there are numerous mutual funds that have historically yielded returns of 15% or more over the long term, making a 12% return expectation a conservative and practical choice for investors.
How much does the mutual funds charge in commission..?
How can I get all details like your video
Bro the amount 20500 is fixed
Or we can do for the less amt pls reply me boss
Enna Anna Vishal maari eruka
Bro which website did you use to check the returns of mutual fund. Nanu check pannanu bro Groww la 5 years mela show agala
Hai bro i already invest in quant flexi cap fund. Pls suggest diversified another fund
This 20500 is only for 8 yrs or i should continue to invest for full 15yrs ? to gain 1C
Is there any history where they stopped people from redeeming their money from stock market due to pandemic or war or natural disasters.
எந்த புரோக்கர் ஆப்ல ஸ்டாக் வாங்கினா நல்லா இருக்கும் நீங்க இதுல வாங்குறீங்க நான் தெரிஞ்சுக்கலாமா Thank you
Bro i am really scared of sip investment because if a pandemic like covid arises in future all our investment will be in a bearish
Unga contact panrathu epadi bro boosan bro…
i wish ur videos should pass through this generation youngsters. In my early stages no one was there to guide like this. Now i am 33 , anyways i am not late . But in my 20s if i could have got such informations i would have been much better
Hello Boosan Sir..I have query regarding navi nifty50 index tax saver.. which has very less expense ratio of 0.1% where I have a doubt because of less expense ratio this will not perform well or it will..??
I have 2 points to discuss with you please help me out with more clarity on the elss fund..
Point 1 – Wat is the procedure to cancel elss inbetween..?? If yes wat will be the charges..!! If not possible then point 2..!
Point 2 – For the next year should I continue investing on the same navi nifty50 index tax saver or else should I choose other elss than this like as IIFL nifty50 index tax saver
Expecting your reply on this will be very helpful for me..Thanks in advance
Bro 20500 monthly on a MF via SIP is enough? Or we have to increase it yearly?
Bro how can i join sip please support
Bro antha NRI pathi konjam sollunga bro
Bro sip la one year ikku noe time 1 lack poda lama bro pls soluga
Demant account open panni use pannama iruntha enna agum broo