If you invest money in mutual funds through SIP for a long time, then you can add a good amount of funds for your future. The good thing is that you can start investing in SIP with even Rs 500.
Power of SIP: Start investing with just Rs 500, you will accumulate more than Rs 21 lakh in 25 years. If you want to see the benefit of compounding, then the best example of it is Mutual Funds. Nowadays people are increasingly investing money in mutual funds through SIP. Mutual funds are market linked, so the return on investment in it cannot be guaranteed, but most experts believe that on an average the return is 12 percent. You will not get this much return in any guaranteed scheme. Sometimes this return is even more than this.
In such a situation, if you invest money in mutual funds through SIP for a long time, then you can add a good amount of funds for your future. The good thing is that you can start investing in SIP with even Rs 500 and as your income increases, you can increase it a little from time to time. It does not matter how big the amount you start SIP with, what matters is how long you continue it with discipline. If you want, you can start SIP from Rs 500 and add lakhs of rupees. Know how-
This way more than 21 lakh people will be added in 25 years
If you start investing in SIP with even Rs 500, you will continue this investment for at least 25 to 30 years. Also, you will have to increase the amount in this investment by at least 10 percent every year. For example, if you started investing with Rs 500, then next year you will have to invest 10 percent of Rs 500 i.e. Rs 50, i.e. Rs 550 in that year. Next year, 10 percent of Rs 550 i.e. Rs 55 will have to be added to it. In such a situation, you will have to invest Rs 605 in that year.
Similarly, you have to continue your investment by adding 10 percent amount every year. In this way, your total investment in 25 years will be Rs 5,90,082, but if you calculate the return at 12 percent, you will get Rs 15,47,691 only from interest. In this way, after 21 years you will get a total of Rs 21,37,773.
Fund worth Rs 44,17,062 will be ready for investment for 30 years
If you continue the investment for 5 more years i.e. for about 30 years, then your total investment will be Rs 9,86,964, but at the rate of 12 percent, the interest on it will be Rs 34,30,098 and after 30 years you will get a total of Rs 44. Will be the owner of Rs 17,062.
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