Mutual fund SIP is considered a great option to make big money in the long term. Here we will know how a SIP of Rs 5,000 can create a fund of Rs 2.63 crore and how much time it will take.
Investment made for the long term makes you a lot of money. If a person wants to invest for the long term, then he has many investment options available. Mutual fund SIP is considered a great option to make a lot of money in the long term. Here we will know how a fund of Rs 2.63 crore can be created from a SIP of Rs 5,000 and how much time it will take.
Every year the SIP amount will have to be increased by 5%
If a person starts a SIP with Rs 5000 and increases the SIP amount by 5 percent every year, this target can be achieved easily. If you get an average return of 12 percent every year on this investment plan, then in 30 years you can have a fund of Rs 2.63 crore.
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If you do a step-up of 10 percent, in how many years will a fund of Rs 2.86 crore be ready
If you start a SIP with Rs 5,000 and step-up your SIP amount by 10 per cent every year, which gives you an average estimated return of 12 per cent per year, a fund of Rs 2.86 crore can be created in just 27 years.
A fund of Rs 3 crore could have been created in 27 years
Moreover, if you start a SIP with Rs 5,000 and step up by 5% every year and get an average return of 15% every year, then a huge fund of Rs 3.07 crore can be created in 27 years. While starting a mutual fund SIP, you have to keep in mind that the returns in it are never the same and there can be huge fluctuations in it.
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