8:4:3 Investment Rule: In how many years your Rs 1 crore corpus can turn into Rs 2 crore and Rs 3 crore
The 843 Investment Rule and Rule of 72 help mutual fund investors achieve long-term growth. With a 12% return, investments double in 8 years and quadruple in 12 years. Combined with SIP contributions, these rules can grow your Rs 1 crore corpus to Rs 2 crore and beyond.
The 8:4:3 Rule Overview
This rule helps investors estimate how long it will take to double, quadruple, and multiply their investments with a 12% annual return.
First Doubling in 8 Years
With a 12% return, your investment doubles in approximately 8 years.
Second Doubling in 4 Years
After the first 8 years, your investment doubles again in 4 years, making it 4 times the original amount.
Third Doubling in 3 Years
In the next 3 years, your investment doubles once more, reaching 8 times the initial corpus.
Compounding Effect
The longer you stay invested, the more you benefit from earning returns not only on the principal but also on accumulated interest.
Doubling Rs 1 crore corpus
Starting with Rs 1 crore and investing Rs 50,000 monthly through SIPs at a 12% return rate, your corpus will double to Rs 2 crore in approximately 8 years.
Tripling Rs 1 crore corpus
Continuing the same SIP, your investment will grow to Rs 3 crore in around 12 years.
The Rule of 72
Divide 72 by your annual return rate to estimate how long it will take to double your investment. For a 12% return, it will take around 6 years.
Disciplined Investment Strategy
The 8:4:3 rule encourages consistent, long-term investing, helping you ride out market volatility and avoid impulsive decisions.
Inflation Protection
This rule assumes a 4% annual inflation rate, meaning your investment grows in real terms, preserving its purchasing power over time.