New Delhi, Oct. 1 -- If you invest consistently in mutual funds via a systematic investment plan (SIPs), you can definitely meet your financial goals well in time. If your financial goal is high, say Rs.1 crore, that you aspire to attain in the next 12 years, how much investment would that require?

Well, it depends on the rate of return that your investment tends to give. The higher the annualised return, the lower theSIP. Conversely, the lower the return on investment, the higher the SIP required.

Before proceeding, it is important to first understand the phenomenon of compounding. Under this, return earned in the initial period becomes principal in the later years, thus delivering accelerated returns in the later years.

This phenomen...