Step-Up SIP Benefits: The dream of becoming a millionaire in India is no longer just a fantasy but possible with proper financial planning. If you want to create a corpus of Rs 1 crore in the next 10 years, mutual funds and gold investments can prove to be great options. Disciplined investing and the power of compounding have the potential to transform even modest savings into a huge wealth. Let us understand how you can achieve this big goal through step-up SIP and investing in gold.

Step-up SIP, the magic technique of investment

Simple savings are not enough to become a millionaire. For this you need ‘Step-up SIP’ Will have to resort to. This means that as your income increases, you should increase your investment amount by a certain percentage every year. For example, if you increase your SIP by 10 percent every year, you can get closer to your goal in a short period of time without any major financial burden. This strategy helps to beat inflation and take maximum advantage of compounding.

Complete mathematics of Rs 1 crore from mutual fund

If you start investing Rs 30,000 every month in a mutual fund and increase it by 10% every year, after 10 years your position will be much stronger. With an average annual return assumption of 12%, your total investment in 10 years will be approximately Rs 57,37,472. You can get an estimated return of around Rs 43,85,505 on this investment. In this way your total fund value will become Rs 1,01,22,978, due to which your dream of becoming a millionaire will be fulfilled.

How to create a fund by investing in gold?

Gold has always been a favorite and safe investment of Indians. If you aim to make Rs 1 crore by investing in gold, then you will have to start investing around Rs 33,000 every month and increase it by 10% every year. If we assume an average annual return of 10% on gold, then your total investment in 10 years will be approximately Rs 63,11,220. The interest received on this will be around Rs 37,40,091, due to which your total deposit amount will reach around Rs 1,00,51,311.

Mutual Funds vs Gold: Which One is Better?

Both mutual funds and gold have their own characteristics. Mutual funds have the potential to deliver higher returns over the long term, but they also involve market risk. On the other hand, gold is considered the safest in times of global uncertainty and geopolitical tension. Experts believe that a balanced portfolio is one that has a mix of both. A period of 10 years is enough time to balance the market fluctuations, so investing with patience can definitely make you rich.