investment It is very important to always have a good strategy. Everyone desires to become rich. But becoming rich is not so easy. There is no short cut to earning money. It requires discipline, patience and an investment strategy. Today we are going to tell you some such formulas, following which your investment journey will become easier and you will be able to create a big fund. Let us know.
1. Rule of 72
With the help of the rule of 72, you can know in how much time money will double at a fixed interest rate. For this you will have to divide the interest rate that you are getting on the investment by 72. For example, you are getting 7 percent interest on FD in a bank. If you divide 72 by 7, the answer will be 10.28. That means at 7 percent interest your money will double in 10.28 years.
2. 10-12-10 rule
The 10-12-10 rule states that by investing Rs 10,000 every month in an investment option offering 12% annual returns for 10 years, you can accumulate around Rs 23-24 lakh. Whereas, if you invest Rs 43,000 every month in an equity mutual fund or shares with an average annual return of 12%, you can create a corpus of Rs 1 crore in 10 years.
3. 20-10-12 Rule
The 20-10-12 rule is a long-term investing strategy. It states that if you invest Rs 10,000 every month for 20 years in an investment option giving 12% annual returns, you can accumulate a corpus of Rs 1 crore.
4. 50-30-20 rule
The 50-30-20 rule is a personal finance guideline that helps you allocate your income between different financial goals. According to this rule, you should set aside 50% of your income for essential expenses, 30% for discretionary expenses like entertainment and eating out, and 20% for savings and investments.
5. 40-40-12 rule
You can adopt the 40-40-12 rule to build a big corpus in 10-20 years. In this you have to save more. According to this rule, you have to save and invest 40 percent of your monthly income. Keep 40 percent of your portfolio in mutual funds or shares and target an average annual return of 12 percent by investing in equities.
6. 15-15-15 rule
According to the 15-15-15 rule, if you invest Rs 15,000 every month for 15 years in an investment option where you get an average return of 15% per year, you can accumulate around Rs 1 crore.
7. Rule of 25X
This rule is for those who wish to get early retirement. According to this rule, you need to save 25 times your annual expenses so that you can retire comfortably. For example, if you need Rs 4 lakh annually for your living, you will need Rs 1 crore (Rs 4 lakh x 25) for your retirement fund. You can achieve this target by using investment options like SIP. The sooner you start investing, the easier it will be to achieve this target.
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