Systematic Investment Plan: As soon as there is talk of investment, people definitely mention SIP i.e. Systematic Investment Plan. There are many advantages of investing in mutual funds through SIP.
For example, you can start SIP with just Rs 500, increase the investment over time, pause the SIP if needed and start it again from there etc. Apart from this, despite being linked to the market, the risk in SIP is considered less and the returns are better.
Most experts believe that on an average up to 12 percent interest is available through SIP and sometimes this interest can be up to 15 and 20 percent. In this you get the benefit of compounding, in this case you can easily create wealth through SIP. The longer you run the SIP, the better you will benefit. If you are going to start SIP for the first time, then let us tell you how much return you will get in 5, 10, 15 and 20 years from a monthly SIP of Rs 1000.
5 year SIP
According to the SIP calculator, if you start a monthly SIP of Rs 1000, then in 5 years you will invest a total of Rs 60 thousand, but you will get a total of Rs 22,486 as interest and a total of Rs 82,486 as 12% return. . On the other hand, if the return is 15 percent, then a total of Rs 89,682 will be received with an interest of Rs 29,682.
10 year SIP
On the other hand, if this SIP is continued for 10 consecutive years, then the total investment will be Rs.1,20,000. At 12%, you will get Rs 1,12,339 as interest, which is almost equal to your investment. In this way after 10 years you will get a total of Rs 2,32,339.
15 year SIP
If the SIP of Rs 1000 is continued for 15 consecutive years, the total investment will be Rs 1,80,000. But with 12% compounding interest, you will get a total of Rs 3,24,576 as interest, which is much more than your investment. In this way after 15 years you will get a total of Rs 5,04,576.
20 year SIP
On the other hand, if you invest only Rs 1000 per month continuously through SIP for 20 years, then your total investment will be Rs 2,40,000. But as a 12 percent return, you will get a total of Rs 7,59,148, which is more than double your invested amount. In this way after 20 years you will get a total of Rs 9,99,148.
