Make Rs 1 crore fast with mutual funds using 8-4-3 investment rule!

Among various requisites to become successful as an investor, one of them is having patience to see your investment grow slowly during the initial phase and reap the benefit of compounding during later years. Mutual funds also use compounding to grow investors money over time.

In this article, we will learn how one can utilise the compounding magic in mutual funds to make Rs 1 crore faster. Everyone aspires to become a ‘crorepati’ as having Rs 1 crore as a corpus is considered an important milestone for many salaried and middle-class investors. People often ask what it takes to become a ‘crorepati’? Is there a specific time required to accumulate Rs 1 crore? Is it possible to accumulate such a huge amount? The answers to these questions lie in the 8-4-3 investment rule.

What is the 8-4-3 investment rule?

The 8-4-3 rule shows how any financial goal can be reached through the power of compound interest. It is a concept that can be used to help your investments grow over time. It is not a specific investment strategy, but a simple way to understand the potential pace of growth.

Also Read Slowdown blues: A decisive policy shift is needed to boost income and aid productivity gains How the 15-15-15 Rule can help you build Rs 1 cr through mutual funds Ringside view by Tushar Bhaduri: With a Test win in two days, India’s ruthlessness a characteristic of great sides Sebi tightens rules to check F&O frenzy

Also read: Mutual Funds: How new tax rules impact your investments?

How does 8-4-3 rule of compounding work?

Take an example of how this rule grows money: Suppose you invest Rs 20,000 every month in an instrument that gives 12% interest per annum. Assuming it is compounded annually, you would make Rs 32 lakh in eight years. The first Rs 32 lakh is made in 8 years, but the next 32 lakh is made in just 4 years at the same rate of interest. So, at the end of 12 years, a Rs 20,000 monthly investment in an investment tool would make Rs 64 lakh.

When this amount is left for another 3 years along with continued Rs 20,000 per month investing, the corpus would be Rs 1 crore.

 » Read More

Related Articles

Q3 Results 2025 Live Updates: Hindalco, Reliance Infra, Godfrey Phillips, United Breweries, others releasing Q3 results today

Go to Live UpdatesQ3 Earnings Today Live Updates: While a number of companies have already released their Q3 numbers, others are still in the queue as the fiscal third quarter earnings season is now nearing its end. Till date, majors like Reliance Industries, Swiggy, ITC, Hindustan Aeronautics, Godrej Industries, Vodafone Idea, Bharti Airtel, SBI, Nestle

Markets flat: Nifty near 23,000, Sensex up 30 points; Zomato, Kotak Bank lead gains

Indian stock markets opened on a flat note on Thursday, with both the Sensex and Nifty trading in the green. At the opening bell, the NSE Nifty gained 10.50 points or 0.05% to 23,055.75, while the BSE Sensex surged 30.02 points or 0.04% to 76,201.10. The Nifty Bank index fell 10.10 points to 49,469.35. Ahead

NCDEX plans foray into equity & derivatives with Rs 400-600 crore investment: Report

The National Commodity & Derivatives Exchange Limited (NCDEX) said that it will foray into the equity and equity derivatives category, signifying a notable transition from its traditional agriculture-centred operations, according to a report by Mint. The board of NCDEX approved the decision to enter in derivates segment on February 12. “The Board of Directors of

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Q3 Results 2025 Live Updates: Hindalco, Reliance Infra, Godfrey Phillips, United Breweries, others releasing Q3 results today

Go to Live UpdatesQ3 Earnings Today Live Updates: While a number of companies have already released their Q3 numbers, others are still in the queue as the fiscal third quarter earnings season is now nearing its end. Till date, majors like Reliance Industries, Swiggy, ITC, Hindustan Aeronautics, Godrej Industries, Vodafone Idea, Bharti Airtel, SBI, Nestle

Markets flat: Nifty near 23,000, Sensex up 30 points; Zomato, Kotak Bank lead gains

Indian stock markets opened on a flat note on Thursday, with both the Sensex and Nifty trading in the green. At the opening bell, the NSE Nifty gained 10.50 points or 0.05% to 23,055.75, while the BSE Sensex surged 30.02 points or 0.04% to 76,201.10. The Nifty Bank index fell 10.10 points to 49,469.35. Ahead

NCDEX plans foray into equity & derivatives with Rs 400-600 crore investment: Report

The National Commodity & Derivatives Exchange Limited (NCDEX) said that it will foray into the equity and equity derivatives category, signifying a notable transition from its traditional agriculture-centred operations, according to a report by Mint. The board of NCDEX approved the decision to enter in derivates segment on February 12. “The Board of Directors of

Suven Pharmaceuticals Share Price Today Live Updates, 13 Feb, 2025: Suven Pharmaceuticals on the radar

Go to Live UpdatesSuven Pharmaceuticals Share Price Today Live Updates, 13 Feb, 2025: The Suven Pharmaceuticals share is in news and the counter closed trade on 12 Feb, 2025 at Rs 1050.1. The shares touched intraday high of Rs 1071.4 in the last trading session while the intraday low was at Rs 1026.0. The company’s

New Income Tax Bill 2025 Live: FM Sitharaman to introduce the new I-T Bill in Parliament today

Go to Live UpdatesSitharaman to table new Income tax Bill in Parliament LIVE: According to the agenda that the Lok Sabha secretariat circulated on Wednesday, Finance Minister Nirmala Sitharaman will finally table the new Income Tax Bill in the Parliament today. The first draft of the 622-page Bill drew significant attention on Wednesday when it