Trending @Accenture; Investment tips - doubling 1cr
Hi guys, quick question.. maybe some of you might have already understood this, how does wealth explode after 1cr? I mean will incremental sip be enough to get to 1cr, which is mathematically supposed to double in the next 5 yrs. But will it require one person to withdraw the 1cr and then reinvest or just continuing sip would be enough.
Ex: say a total investment via sip is 58lakh which becomes 1cr in 15yrs, then should one withdraw the whole amount and re-invest, or just continue sip investment on the 58lakhs be enough to turn that 1cr to 2cr in the next 4-5 years.
Remain invested and see the magic of compounding . Don't make a mistake of breaking the sip just withdraw some amount as per your need when you hit 1cr but continue it still , and see the power of compounding .☺️
You can use a sip calculator to understand it more visualy, hope that helps.
You don't have to take out the money. The increased amount is automatically reinvested. That is where it is different from an FD. Taking out the money will also make u eligible for tax. However, you might want to take out the money if the XIRR ( actually earned Annual return rate) seems to be lower than your expectation.
