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Mutual Fund SIP: You can make Rs 5 crore with a SIP of Rs 10,000, see here how the Step-Up formula will help

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While investing in Mutual Fund SIP, keep in mind that it involves the risk of the stock market. The ups and downs in the market have a direct impact on your returns. Along with this, you also have to pay capital gains tax on the profit from SIP.

The real fun of Mutual Fund SIP is available only when it is invested for maximum time. SIP proves to be very helpful in making big money in the long term. This is the reason why Mutual Fund SIP has helped many people fulfill their dreams. AMFI figures show that Mutual Fund SIP has given tremendous returns to investors in the long term. Here we will know how a fund of Rs 5 crore can be collected from a SIP of Rs 10,000.

You can achieve the target of Rs 5 crore by using step-up formula

To start SIP with Rs 10,000 and make Rs 5 crore in a short time, step-up formula has to be used. Increasing the money invested in SIP every year is called step-up. If you start a SIP with Rs 10,000 and increase this investment by 5 percent every year, i.e. step-up, you can achieve your goal. If you get an annual estimated return of 12 percent with this investment strategy, then in 30 years you can create a fund of Rs 5.27 crore.

Also Read- EPFO: Government will increase EPFO ​​salary limit to ₹ 21,000! Employees will get ₹ 1 crore on retirement

Capital gains tax will have to be paid on the profit from SIP

If you get an annual estimated return of 15 percent every year by following this investment strategy, then you can create a corpus of Rs 5.25 crore in 26 years. If you continue your investment for a few more years, then your money can grow even more and faster. While investing in mutual fund SIP, keep in mind that it involves the risk of the stock market. The ups and downs in the market have a direct impact on your returns. Along with this, you also have to pay capital gains tax on the profit from SIP.

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Deepak Kumar
Deepak Kumar
Deepak Kumar has 2 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @deepakmaurya152004@gmail.com
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