Mutual Fund SIP: Mutual Fund SIP is considered to be the best investment tool to make big money in the long term. According to AMFI data, Mutual Fund SIP has helped investors make a huge amount in the long term. Investors get two big benefits in Mutual Fund SIP. In this investment option, you get the strong benefit of compounding along with attractive returns from the stock market. Here we will know how a fund of Rs 10 crore can be created from an SIP of Rs 5,000.

The investment will have to be continued with the step-up formula

If you want to see the real power of compounding, you should continue investing in mutual funds for as long as possible. To create a fund of Rs 10 crore in a short time with a SIP of Rs 5,000, you will have to use the step-up formula. Under this formula, you will have to increase the amount of your investment every year. With the help of this formula, you can create a fund of Rs 10 crore by starting a SIP with just Rs 5,000.

A fund of Rs 10.19 crore can be ready in 36 years

If you are starting a SIP with Rs 5,000 and you get an average return of 12 percent every year, then in 36 years you can create a huge fund of Rs 10.19 crore. For this, you will have to step up your SIP by 10 percent every year.

A fund of Rs 10.50 crore can be ready in 35 years

Moreover, if you are starting a SIP with Rs 5,000 and you get an average return of 15 percent every year, then in 35 years you can create a strong corpus of Rs 10.50 crore. For this, you have to step up your SIP by 5 percent every year.