SIP Best Calculation: The 11x12x20 SIP formula can turn your small monthly savings into crores. Invest ₹11 every year and aim for a 12% return, and the power of compounding will make you a millionaire in 20 years. This simple formula is a game-changer for every average investor.

There are many investment options available in the market today, but some people are always looking for options that allow them to make good money with a moderate amount of risk. So, if you're looking for such an option, then SIP might be the best option for you. In fact, Systematic Investment Plans (SIPs) hold a magical formula that can make you a millionaire. It's called the 11x12x20 money-making formula. So, let's explain this formula to you in simple terms so you can achieve your financial goals.

What is the 11x12x20 formula of SIP?

This formula focuses on three key factors: annual growth in your investment amount, expected returns and investment period.

Duration SIP Amount (₹) Future Value (₹)

20 years	11000	1 Crores
1 years	11000	1.4 Lakhs
2 years	11000	3 Lakhs
3 years	11000	4.7 Lakhs
4 years	11000	6.7 Lakhs
5 years	11000	8.9 Lakhs
8 years	11000	17.3 Lakhs
10 years	11000	24.6 Lakhs
12 years	11000	33.9 Lakhs
15 years	11000	52.4 Lakhs
18 years	11000	78.3 Lakhs
20 years	11000	1 Crores
21 years	11000	1.1 Crores
22 years	11000	1.3 Crores
23 years	11000	1.5 Crores
24 years	11000	1.7 Crores
25 years	11000	1.9 Crores
26 years	11000	2.1 Crores
27 years	11000	2.4 Crores
28 years	11000	2.7 Crores
29 years	11000	3 Crores
30 years	11000	3.4 Crores
32 years	11000	4.3 Crores
35 years	11000	6.1 Crores

Investment of Rs. 11,000: This means that you will have to invest Rs. 11,000 every month in your SIP consistently to become a millionaire in the future.
12 (Expected Return): This assumes that you can earn an average annual return of 12% on your SIP investment. Equity mutual funds have often given better returns than this over the long term, but 12% is a realistic and achievable target.
20 (Investment Period): This means that you will have to remain invested consistently for at least 20 years. The real power of SIP lies in compounding, and compounding needs time to work its magic. The longer the time, the bigger your corpus.

How does this formula work? Let's understand with an example:

Yes, if you invest ₹11,000 from your income every month for 20 years, you can become a millionaire based on a mere 12% return. Investing ₹11,000 for 20 years will result in an investment amount of ₹26.4 lakh. This investment will yield a wealth gain of ₹74.8 lakh. Only then will your total fund reach ₹1 crore. It's clear how you can easily build a fund worth crores of rupees. Even if your total investment is in the lakhs, the returns you'll receive due to compounding can be beyond your imagination.

Why is this formula so powerful?

Power of Compounding : This formula works on the principle of compounding (compound interest). That is, you earn returns not only on your principal but also on your returns, making your money grow faster.
Beat Inflation: An 11% SIP increase every year ensures that you can beat rising inflation and the value of your investment does not decrease over time.
Discipline : This formula encourages you to maintain discipline in investing, which is crucial for long-term wealth creation.
Automatic Wealth Creation: Once you adopt this pattern, your money starts working for you almost automatically.

Who should adopt this formula?

This formula is for anyone who wants to build wealth for their future, whether it's for retirement, their children's education, or buying a home. The sooner you start, the more you'll benefit.

Conclusion of SIP:

The 11x12x20 SIP formula isn't rocket science. It's a simple, effective, and accurate plan that has the potential to make you a millionaire. All you need is patience, discipline, and faith in the power of compounding. Understand this formula today and take the first step toward securing your financial future. (Note: This article is for informational purposes only and should not be construed as investment advice. Consult a financial advisor before making any investment decisions.)

Top 5 FAQs

1. What is the 11x12x20 formula of SIP?

This formula says that increase the SIP amount by 11% every year, assume a 12% return and continue investing for 20 years.

2. Can one really become a millionaire with this formula?

Yes, with long term compounding and regular SIP growth, an investment of lakhs can turn into crores.

3. Why is it necessary to increase SIP by 11% every year?

It keeps pace with your investment capacity and income growth and beats inflation.

4. Is a 12% annual return realistic?

Equity mutual funds have given average returns of 12% or more over the long term, so this target is possible.

5. Who should adopt this formula ?

For anyone who wants to build a fund worth crores for retirement, children's education, marriage or big financial goals.

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