What is the 8-4-3 Rule of SIP and How Can it Benefit You?

Nov 26, 2024 · What’s the 8-4-3 SIP Rule? The 8-4-3 SIP rule is a strategy demonstrating the growth of your investment in an SIP plan over time through the power of compounding. As per …

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8-4-3 Rule Of Compounding: How To Accumulate Rs 1 Crore In Just …

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Mar 11, 2024 · This means you earn interest on previously accumulated interest. 2.The 8-4-3 rule explained: - You can follow this rule to systematically grow your money: - 8% of Your Income: …

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FAQs about What is the 8-4-3 Rule of SIP and How Can it Benefit You? Coupon?

What is the 8-4-3 SIP rule?

The 8-4-3 SIP rule is a strategy demonstrating the growth of your investment in an SIP plan over time through the power of compounding. As per this strategy, your SIP investment grows in three distinct phases: Initial Growth Years (1 to 8): Your investment grows steadily over the first 8 years at an average annual return of 12%. ...

What is the 8-4-3 rule in mutual funds?

Always remember that the 8-4-3 rule is a general illustration and actual returns may vary depending on the mutual fund performance and market conditions. Compounding works well with consistent investments made regularly over long periods. Automating investments through SIPs ensures monthly contributions are made without fail. ...

How many SIP accounts are there in India?

As per data from the Association of Mutual Funds in India (AMFI), there are about 10.2 million SIP accounts through which investors invest regularly in Indian mutual funds. The 8-4-3 is among the several strategies you can deploy to get the best out of your SIP plan. What’s this strategy? Let’s find out. What’s the 8-4-3 SIP Rule? ...

How can the 8-4-3 rule help you become financially successful?

The 8-4-3 rule can help you become financially successful by transforming small, consistent investments into significant wealth over time with perseverance and dedication. Angel One offers a user-friendly platform to invest in mutual funds via SIP or lump sum. ...

Can sip by SIP help you achieve your life goals?

SIP by SIP, we can achieve our life goals! While the discipline of investing periodically in mutual funds may be challenging, it is very beneficial in the long run. The thumb rule of 8-4-3 makes wealth creation faster though, with the magic of compounding. ...

Why should you invest in a SIP plan?

By riding on the power of compounding by implementing the 8-4-3 rule, you can counter inflation and get inflation-indexed returns in the long term. This helps you meet long-term goals with prudence. The benefits of an SIP plan go beyond investing only in mutual funds. ...