News India Live, Digital Desk: Most of us (especially those from the middle class) think that to become a millionaire, one should either win a lottery or own some land. We think that adding one crore to our salary is not possible in this life. But wait! Today we are going to tell you about a magical formula in the world of finance, which is based on mathematics and not on luck. If your salary is decent and you have the courage to save Rs 30,000 per month, then in the coming 8 to 10 years you can join the ‘Crorepati Club’. The name of this magic is SIP (Systematic Investment Plan). Let us understand in simple language how it works. Is this possible with a SIP of Rs 30,000? See, adding money is an art, but making money from money is ‘compounding’. Albert Einstein called it the eighth wonder of the world. According to simple mathematics, if you put Rs 30,000 a month in the piggy bank, then in 8 years you will be able to deposit only Rs 28.8 lakh. 1 crore is very far. Then how will this happen? Here the returns of mutual funds and the spice of step-up come in handy. What is this ‘step-up’? It is a bit difficult to reach Rs 1 crore in 8 years by investing only Rs 30 thousand (because it will require very high returns, about 20-25%, which is not always available). But if you want to be a smart investor, then you will have to do Annual Step-Up i.e. increase the investment every year. Understand this strategy like this: Start: You start SIP of Rs 30,000 per month. Increase every year: As soon as your salary increases (increment), you also increase your SIP amount by 10% or 15%. Returns: If you get an average return of 12% to 15% from the market and you If you keep increasing your installments little by little every year, then with the power of compounding, your corpus (deposit amount) rapidly starts reaching close to Rs 1 crore in around 8 years. Discipline is the biggest key. Friends, investing is like going to the gym. Body is not made in one day, one has to go every day. Similarly, whether the market goes up or down, you do not have to stop your SIP. Those who invested courageously and continuously in the last 10 years are sitting in profit today. All you have to do is choose a good ‘Mid Cap’ or ‘Flexi Cap’ mutual fund scheme (after asking an expert) and then forget about it.