SIP Calculation: It is definitely difficult to become a millionaire, but not impossible. If investment is done in the right way at the right place, then every goal will be fulfilled. SIP- Systematic Investment Plan plays with you in this.
SIP is such a tool that can make you a millionaire in the long run. If you invest for a long time, you can expect to earn huge returns through compounding. Experts believe that investment made for 20, 25, 30 years can give you a profit of up to 20 percent. That’s why the sooner you start investing, the more it will be beneficial.
Start with just Rs 1000
Keep in mind, investment has to be regular. But, for this, you can start with only 1000 rupees. It is very easy to convert this small fund into a large corpus. You can become a millionaire with a SIP of 1000 rupees. Let us know how a fund of 2 crores will be prepared from 1000 rupees? How to invest 1000 rupees every month. In the last few years, many mutual funds have given returns of up to 20% or more.
How many will meet in 20 years?
1000 rupees will have to be invested every month. By depositing this amount for 20 years, you deposit a total of Rs 2.4 lakh. In 20 years, your fund will increase to 15 lakh 16 thousand rupees at 15 percent annual return. If we talk about 20% annual return, then this fund will increase to Rs 31.61 lakh.
More than 2 crore rupees fund will be made on 30 years of investment
Now let’s assume that we invest Rs 1000 every month for 25 years and get an annual return of 20%, then on maturity a fund of Rs 86.27 lakh will be available. If this period is 30 years, then with a return of 20%, your fund of Rs 2 crore 33 lakh 60 thousand will be ready, as shown in the above calculation.
How do you get such a huge benefit?
Investors get the benefit of compounding on mutual funds. There is a facility to invest every month in this. This is the reason why you can create a big fund by investing a small amount. The interest on the returns earned makes it grow faster.
Disclaimer: Investing in Mutual Funds is subject to risk. Please consult your financial advisor before making any kind of investment.
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