Mutual Fund SIP Investment: If you save Rs 100 or Rs 500 daily, you can easily become a millionaire in the future. Let’s understand this with a simple calculation.
Mutual Fund SIP Investment: Mutual Fund SIP has been receiving a lot of investment for the past few years. In July, more than Rs 23,000 crore was invested in mutual fund schemes for SIP. SIP is an investment option through which you can get strong returns like equity even from regular small savings. If you make it a habit to invest your small savings every month, you can easily create a fund of lakhs of rupees in the next few years. If you save Rs 100 or Rs 500 daily and choose the SIP option every month, you can easily become a millionaire in the future. Let’s understand this with a simple calculation.
SIP Calculator: Know the power of saving ₹100 every day
Suppose you save ₹100 every day, then your monthly savings become ₹3000. You start doing SIP of ₹3000 every month and in the long term, you get an average annual return of 12 percent. According to SIP calculation, in the next 30 years you will be the owner of ₹1 crore (1,05,89,741). In this, your return will be ₹10,80,000 and the estimated wealth gain will be ₹95,09,741.
SIP Calculator: Know the power of saving ₹500 every day
Suppose you save ₹500 every day, then your monthly savings become ₹15,000. You start doing SIP of Rs 15,000 every month and in the long term you get an average annual return of 12 percent. According to SIP calculation, in the next 17 years you will be the owner of Rs 1 crore (1,00,18,812). In this, your return will be Rs 30,60,000 and the estimated wealth gain will be Rs 69,58,812.
SIP: What do experts say
Amit Kumar Nigam, Director of BPN Fincap, says, SIP i.e. Systematic Investment Plan is an organized way of making regular investments in mutual funds. In this, investors get the benefit of diversification, compounding and rupee cost averaging. However, there is risk in this too.
He says, the return received on a fund in the past years is not a guarantee of future returns. Therefore, the investor should decide on investment by looking at his income, target and risk profile. The specialty of SIP is that you can start investing with just Rs 100 per month.
(Disclaimer: The SIP calculation given here is based on an assessment. This is not an investment advice in any form. Investment in mutual funds is subject to market risks. Consult your advisor before taking any investment decision.)
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