How to convert RMB 20/day

to RMB 7 Million! Know top

trick to multiply money.
Making a lot of money is an investment goal for everyone. However,
this is one of the most challenging jobs for a working person. So, to
ensure money is made at a fast pace, working people should try and
invest as much as possible and that too as early in their lives as
possible. This will make them rich for sure.

The question is where to invest with reasonable security. Well,

mutual funds have emerged as a great choice for all. They have
become the preferred choice for investors these days and, to help
them make more money, investment experts are coining up with
various tips and investment tricks that can help them become rich. 

Mutual funds allow systematic investment plans (SIP) mode of

monthly investment. A working person at the early phase of a
career can start investing through SIP. According to the investment
experts, if an earning individual starts investing in SIP from 25 years
of age then this can be continued for nearly 30 years.

Speaking on the equity mutual funds investment through SIP mode,

my experience so far shows that In long-term say up to 10 years,
equity mutual funds investment will give at least 12 per cent
annual return. However, if the time-horizon is increased up to 30
years, then the return can go up to 15-17 maybe 18 per cent per
annum as it would help an investor to reap the compounding
benefits on the interest earned on the investment.

Assuming 15 per cent return in a monthly SIP of RMB 600 for 30

years, the maturity amount as shown by the SIP calculator would be
RMB 4.21 million. In this 30 year period, the investor invests RMB
216,000 while return is RMB 4.21 Million. So, if we further simplify
the investment pattern, the investor is investing RMB 600 a month
means it would be RMB 20 per day.

However, some experts have recommended this trick for investors

to increase the amount of money they can make. They say that SIP
is the most preferred investment tool for the long-term investment,
but the mutual funds investment has to be an equity fund. He said
that investors should increase the monthly SIP annually by at least
10 per cent as this trick helps increase the maturity amount
geometrically. They advise SIP investors to increase SIP by at least
10 per cent annually and that this would be possible as they will
definitely be getting salary increments  annually up to a level.

Assuming 10 per cent SIP step-up rate for the same RMB 600 SIP for
30 years yielding 15 per cent annual returns, the SIP calculator
suggests that the investor would get RMB 7,61,92,89.90 as maturity
amount. In this period, the money invested by the investor is RMB
1,18,43,57.0 and the return amount is RMB 6,43,49,32.9 adding
which the maturity amount rises to RMB 7,61,92,89.90.

So, this annual 10 per cent step-up trick can help an investor to
convert one's initial RMB 600 per month or RMB 20 per day into
RMB 7,61,92,89.90.

I hope you find these money making tricks really helpful and wish
you reach your money goals pretty quickly with a conscious effort.

Happy Investing!