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 formula
The formula breaks down as follows:
10 – number of years of investment
12 – number of months in a year
50 – 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 works
Assume 12% annual return from equity mutual funds
Monthly contributions compound over time, generating exponential growth
Even though you invest Rs 60 lakh over 10 years, the total corpus can cross Rs 1.12 crore
Compounding is the real wealth multiplier in sips.
💡 3. Benefits of the 10x12x50 sip approach
Discipline: investing monthly ensures financial consistency
Rupee cost averaging: smooths market volatility impact
Long-term growth: capitalizes on market growth over 10 years
Financial goal achievement: helps in retirement planning, education, or buying a house
🏦 4. Getting started with sip
Choose equity mutual funds with a consistent track record
Set up a monthly auto-debit for Rs 50,000
Review performance annually but avoid panic selling during market dips
Patience is key — the formula works best when followed diligently for 10 years
⚠️ 5. Important considerations
Ensure you can afford Rs 50,000 per month without financial strain
Diversify across multiple funds or sectors to reduce risk
Returns are not guaranteed; 12% is an estimated historical average
✅ 6. Key takeaway
The 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.
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..jpg)
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