weather_iconAshburn | 11.61 °C | AQI 20
Tuesday, 5 November, 2024

---Advertisement---

Business

7531 SIP Rule: How To Use This Mutual Fund Investment Formula To Build Rs 1 Crore Corpus?

7531 SIP Rule is used by mutual fund investors to accumulate a handsome corpus at the end of a set time period of seven years.

7531 SIP Rule: How To Use This Mutual Fund Investment Formula To Build Rs 1 Crore Corpus?
(Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images

New Delhi: ‘7531 SIP Rule’ is used by mutual fund investors to accumulate a handsome corpus at the end of a set time period of seven years. Through smart investing, one can easily build up a corpus of Rs 1 crore within short time period of just seven years. Lets see how is this possible and what does the ‘7531 SIP Rule’ entail?

What Does ‘7’ Resemble In The 7531 SIP Rule?

---Advertisement---

‘7’ resembles  the minimum time frame of total investment. A reasonable tenure helps to average out volatility and increase the odds of handsome returns. The longer the time period the better chances of making good returns!

What Does The Digit ‘5’ Signify In The 7531 SIP Rule?

---Advertisement---

‘5’ signifies diversification of SIP amount  into five different types of assets classes which takes into consideration  value, quality, global exposure, growth at a reasonable price and mid and small cap stocks. Diversification also aids in avoiding dependence of making  returns on a particular type of asset. This increases the chance of making money.     

What Does ‘3’ Resemble In The 7531 SIP Rule?

The digit ‘3’ resembles  different phases of investment. These three phases can come anytime. These might be depressing. But the investor who remains through the test of times, stand  a better chance of reaping rewards. These three are ‘Irritation Phase,’ ‘Panic Phase,’ and ‘Disappointment Phase’. In the first phase the investor might have to face low single digit returns. While, in the ‘Panic Phase, he might see even negative returns. And in the  ‘Disappointment Phase’ he may get comparatively lower return than other asset classes.

What Does The Digit ‘1’ Signify In The 7531 SIP Rule?

Last but not the least, the number ‘1’ in the  7531 SIP Rule signifies increment in investment every year throughout the investment period. As, value of money reduces every year  due to inflation, so, it is imperative to increase the SIP amount every year. This will also help inflate the accumulated corpus.   

.

HISTORY

Written By

Kanishka Birat


Get Breaking News First and Latest Updates from India and around the world on News24. Follow News24 on Facebook, Twitter.

Related Story

Live News

---Advertisement---


live

US Election Results 2024 Live Updates: ‘Get Out And Vote’, Donald Trump Tells Supporters

Nov 05, 2024
US Election Results 2024
  • 09:57 (IST) 5 Nov 2024

    US Election Live: Donald Trump Asks Voters To 'Get Out And Vote'

  • 09:54 (IST) 5 Nov 2024

    US Election Live: Donald Trump Says, 'Thank You Pittsburgh, Pennysylvania'

  • 09:48 (IST) 5 Nov 2024

    US Election Live: 'Now Is Our Time To Act,' Says Kamala Harris

N24 Shorts Logo

SHORTS

Muhurat Trading
Business

Muhurat Trading: How Sensex And Nifty Performed In Last 5 Diwali Special Sessions?

India’s stock exchanges, BSE and NSE, host an annual Muhurat Trading session on the day of Diwali. The term ‘muhurat’ denotes an auspicious moment, and this unique session, spanning about an hour in the evening, marks the commencement of the traditional Hindu accounting year, Samvat.

View All Shorts

---Advertisement---

Trending