Financial Planning: Do financial planning for your 'junior' with this strategy for 15 years..

Financial Tips: Do you want your child to become a millionaire before he reaches college? For this, you should start investing correctly. Yes, if your child is less than 3 years old, then you can secure his future financially through a smart SIP. Yes, you can make your child a millionaire in just 15 years with the help of SIP. So let's understand how and how much money will be invested to make the child a millionaire.

Financial planning for the child

Every parent wants their child to be financially strong when he grows up. But for this, it is important to do the right financial planning first. If your child is 3 years old or even younger, then with the right financial planning, you can make him a millionaire yourself. You can create a fund of Rs 1 crore in 15 years by making small savings through SIP. This fund will be useful for the child's college education etc.

SIP will help with rising inflation

Given the rising inflation and the increasing cost of children's education, correct financial planning is very important. Without financial planning, you cannot manage expenses. That is, to secure the future of the child, start investing in SIP. With the help of SIP, you can create a fund of Rs 1 crore in 15 years.

How will the child become a millionaire?

To give security to the child in the future, it is very important to start investing in SIP from now. Long-term investment in a Systematic Investment Plan (SIP) gives the benefit of compounding. In such a situation, you can create a strong fund with a SIP of just ₹ 16,500 per month. You have to continue this investment for about 15 years.

What does the full calculation say?

If you continue an SIP of ₹ 16,500 per month for 15 years, then you will get a return of 15%. So with this, your total fund can be more than ₹ 1 crore. Your total investment in this fund will be ₹29.70 lakh. Along with the return, you will get ₹1,01,70,032. This means that this can be smart saving and strong financial planning for the future. In simple words, your investment will be ₹29,70,000, in which your return will be ₹72,00,032. With 15%, your total fund will be ₹1,01,70,032.

How to create a fund of 5 crores
If you want to become a millionaire in a short time, then the investment amount in SIP will have to be changed. You should invest only with a monthly SIP of ₹30,000 and increase it by 10% every year. If you get a 12% return on this investment, then you can create a fund of ₹1 crore in just 10 years. Yes, the magic of compounding is such that the first 50 lakhs will be made in 7 years, then the next 50 lakhs in just 3 years and then the next 50 lakhs in just 2 years. In 19 years, this fund can grow to around ₹ 5 crores.

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