Your child will become a millionaire as soon as he becomes an adult, follow the 18x15x10 strategy for investment

Financial Planning for Children : If you want to strengthen your child’s future, you should start financial planning in his name as soon as possible. If you invest properly, you can prepare a large amount for your child as soon as he becomes an adult i.e. as soon as he turns 18. The age of 18 is the time when your child will be at an important turning point in his career. In such a situation, with the support of Rs 1 crore, all his dreams can be fulfilled and you will also be able to see a bright future for him.

Talking about investing for children, there are many options available in the market. 18 years is a long time and mutual fund SIP can be the right option for long term investment. Mutual fund SIP is a better option, in which you get the benefit of compounding if you maintain investment for a long period. There are many mutual fund schemes in the market, in which the return of long term SIP has been 15 percent annual or more. In this regard, you can adopt the 18x15x10 rule or strategy.

Deposit money in this scheme instead of bank, you will earn 40 thousand rupees every month, entire deposit will be returned after maturity

What is the 18x15x10 strategy?

If you are also ready to do SIP (Mutual Fund SIP) for a long period and have a target of creating a fund of Rs 1 crore when your child becomes an adult, then the rule of 18x15x10 in mutual funds can be helpful in achieving your target. Here this rule means that Rs 10,000 should be invested every month for 18 years through SIP in such schemes which are giving interest at the rate of 15 percent per annum.

EPF: If your basic salary is Rs 20,000, you will get Rs 1.50 crore fund on retirement

Strategy for 1 crore fund

Monthly SIP: Rs 18,000
Investment target age: 18 years
Estimated return: 15% p.a.
Total investment in 18 years: Rs 21,60,000 (Rs 21.6 lakh)
Funds at maturity: Rs 1,10,42,553 (Rs 1.1 crore)
Net Profit: Rs 88,82,553 (Rs 88.8 lakh)

It is clear from the calculation that if you do a monthly SIP of Rs 10,000 every month for 18 years and the estimated return on it is 15 percent, then after 18 years you will have a fund of Rs 1.1 crore. During this period, your total investment will be Rs 21.60 lakh, i.e. the net profit will be around Rs 88.8 lakh.

People who saved 5000 rupees monthly made 5 crores, have you invested money in any such scheme

Long term pounding strength

The main purpose of the 18-15-15 rule is to take advantage of the power of compounding. It can turn small monthly investments into a large corpus. But if you want to take advantage of compounding, you should start investing as early as possible and keep the target for a long period. The longer the investment, the more you will get the benefit of compounding.

The calculation we have done here for 18 years, if we do it for 10 years then a fund of Rs 27,86,573 will be ready on maturity, but if we do it for 15 years then a fund of Rs 67,68,631 will be ready. Whereas if we do it for 18 years then we will get Rs 1.1 crore. This is the power of compounding.