Mutual Fund SIP is considered a great option to make big money in the long term. Here we will know how a fund of Rs 2.63 crore can be created from a SIP of Rs 5,000 and how much time it will take.
Mutual Fund SIP: Investment done for the long term makes you big money. If a person wants to invest for the long term, then he has many investment options available. Mutual fund SIP is considered a great option to make big money in the long term. Here we will know how a fund of Rs 2.63 crore can be created from a SIP of Rs 5,000 and how much time it will take.
SIP amount will have to be increased by 5% every year
If a person starts SIP with Rs 5000 and increases the SIP amount by 5 percent every year, this target can be achieved easily. If you get an average return of 12 percent every year on this investment plan, then in 30 years you can have a fund of Rs 2.63 crore.
If you do a step-up of 10 percent, then in how many years will a fund of Rs 2.86 crore be ready?
If you start a SIP with Rs 5000 and do a step-up of 10 percent in your SIP amount every year, on which you get an average return of 12 percent every year, then a fund of Rs 2.86 crore can be created in just 27 years.
A fund of Rs 3 crore can be created in 27 years
Apart from this, if you start a SIP with Rs 5000, do a step-up of 5 percent every year and you get an average return of 15 percent every year, then a huge fund of Rs 3.07 crore can be created in 27 years. While starting a mutual fund SIP, you need to keep in mind that the returns are never the same and can fluctuate heavily.
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