While investing in SIP, keep in mind that SIP never gives the same return and it always sees constant fluctuations. Therefore, to achieve your goal, invest as much money as possible in SIP for as long as possible according to your capacity.
If you want to collect money for your child’s education, marriage or house construction after 20 years and are looking for a better option for investment, then mutual fund SIP can be a great option for you. According to AMFI data, mutual fund SIP has given huge returns to investors for a long time. Although there is a lot of stock market risk in it, but the common people of the country are now investing in SIP on a large scale. Here we will know how much SIP will have to be done to create a fund of Rs 1 crore in 20 years.
SIP return depends on many factors
The return from SIP depends on 4 major things. First, for how many years do you want to invest, second, how much money have you set a target to deposit, third, how much money will you invest and fourth, what percentage of return are you getting. Implementing the first 3 things may be in the hands of investors but the fourth thing i.e. return is not in anyone’s hands. The return received in SIP depends entirely on the movement of the stock market. But, the longer you do SIP, the more benefit you will get from compounding.
A fund of Rs 1 crore can be created from a SIP of Rs 7000
If you get an estimated return of 12 percent every year, then a fund of Rs 1.09 crore can be created in 20 years from a SIP of Rs 11,000. On the other hand, if you get an estimated return of 15 percent every year, then a fund of Rs 1.06 crore can be created in 20 years from a SIP of Rs 7000. While investing in SIP, keep in mind that SIP never gives the same returns and it always sees constant fluctuations. Therefore, to achieve your goal, invest as much money as possible in SIP for as long as possible according to your capacity.
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