SIP vs FD vs EMI: How to Become a Millionaire in 20 Years

• The article compares SIP, Fixed Deposit (FD), and EMI as financial tools for wealth creation over 20 years.
• Investing Rs 10,000 monthly in an FD at 7% interest yields approximately Rs 52 lakh after 20 years, with Rs 24 lakh deposited.
• EMI, while enabling purchases, consumes earnings; a Rs 10,000 monthly EMI for 20 years means paying Rs 24 lakh without wealth creation.
• SIP (Systematic Investment Plan) in mutual funds, with a monthly investment of Rs 10,000 and an assumed 12% return, can accumulate Rs 1 crore in 20 years.
• A 15% return on the same SIP investment could lead to Rs 1.5 crore, highlighting SIP's potential for significant wealth growth due to compounding.

Why It Matters: SIP offers the best path to millionaire status in 20 years compared to FD or EMI due to compound interest.