Use this formula to save Rs 1 crore quickly

According to the ICICI Bank website, "The 8-4-3 rule is a concept used to illustrate the power of compound interest in growing your investments over time. If we look at it carefully, it is not an investment strategy, but rather a simplified way to understand the potential acceleration of growth. "

Your investment might experience the following growth pattern:
Initial Growth (Years 1-8): You see steady growth in your investment amount for the first eight years.
Accelerated Growth (Years 9-12): In the next four years (years 9-12), your investment might achieve similar growth to what it achieved in the first eight years.
Exponential Growth (Years 13-15): In the final three years (years 13-15), your investment might again experience similar growth to the previous four years.

For example, you would receive your first Rs 33.37 lakh in eight years if you invest a lump sum of Rs 21,250 each month in an asset that produces 12% interest annually and is compounded annually.

The next Rs 33 lakh will be achieved in just four years, or half the time. You have just three years to save the remaining Rs 33.33 lakh. Thus, you may save Rs 1 crore in 15 years.

You would have saved Rs 2.22 crore by the end of the 21st year; it takes just six years to double your initial investment of Rs 1 crore to Rs 2 crore.

Thanks to compounding, by the time you reach the 22nd year, you would have accumulated Rs 33 lakh in only one year. Remember that we are using annual compounding here, which means that interest is only calculated once a year.

Adjust your investment with the evolving market conditions and current trends using this dynamic process, you may fine-tune it. It all comes down to minimising risks and seizing opportunities when they present themselves.

Understanding the 8-4-3 concept thoroughly gives one insight into the potential for numerous, reliable investments. As a result, by following it while making long-term investments, an investor may lower risk, protect against inflation, and profit from markets. The key to meeting this need is building money gradually via patience and discipline, regardless of the state of the market.