SIP: SIP has become a popular way of investing. You can earn lakhs of rupees by investing in the right way. You have to save some money from your monthly income and do SIP in mutual funds regularly and continue this investment for the long term.
Many people shy away from the stock market due to the risk involved. If you are interested in profit in the stock market and want to avoid volatility, consider investing in mutual funds through Systematic Investment Plan (SIP). SIP allows you to invest a fixed amount regularly to deal with market fluctuations with a disciplined approach.
What is Systematic Investment Plan (SIP)
Systematic Investment Plan (SIP) is not just an investment vehicle. It is a way to create reliable income for your future. By pledging to invest a fixed amount every month, you can develop a habit that can secure your financial future. Even starting with Rs 3000 per month at the age of 25 can make a huge impact.
What is Compounded Growth
The power of compounding works wonders over time. If you start investing Rs 3,000 every month at the age of 25, you would have invested Rs 36,000 in the first year, but by the time you reach the age of 35, the cumulative investment will be Rs 1.89 lakh. The magic happens when you continue this disciplined approach for 35 years
Know how a Rs 3,000 monthly SIP turns into Rs 1.5 lakh per month
Assuming an average annual return of 12 per cent, your SIP investment of Rs 1.89 lakh in the first year can grow to Rs 2.99 crore by the end of 35 years. SIP turns your consistent monthly investments into a substantial wealth-building strategy. If you choose to invest this substantial sum of about Rs three crore in your retirement fund, even at a modest fixed deposit rate of 6 per cent, it can provide you a monthly income of about Rs 1.5 lakh.
