SIP is considered a very good scheme in terms of wealth creation. If you invest even Rs 1000 in it every month, you can add a fund of more than Rs 35 lakh. Know the complete calculation here.
SIP i.e. Systematic Investment Plan is considered a much better option for investment in today’s time. Investment is made in mutual funds through SIP. Despite being linked to the market, SIP is considered a less risky investment than investing money directly in stocks. Although there is no guarantee of how much return will be received in this, but financial experts say that SIP will give an average return of 12 percent, which is much higher than any other schemes. Apart from this, due to the benefit of compounding, SIP money grows rapidly.
In today’s time, this is a very good scheme in terms of wealth creation. The special thing is that you can start investing in this scheme with just Rs 500 and can increase or decrease this investment anytime according to your income. However, regarding SIP, experts believe that if you invest in it for a long time and keep increasing the investment a little from time to time according to the income, then you can earn good profits. Let us tell you how even if you invest only Rs 1000 monthly, you can add a fund of more than Rs 35 lakh.
Know how the amount will be more than 35 lakhs
Suppose you start a monthly investment of Rs 1000 in SIP, then you will invest Rs 12,000 in a year. You will have to continue this investment continuously for 30 years. In this way you will invest a total of Rs 3,60,000 in 30 years. If an average interest of 12 percent is charged on this, then on an investment of Rs 3,60,000 you will earn Rs 31,69,914 only as interest.
In this way, on maturity after 30 years, you will get a total of Rs 35,69,914, which is more than 10 times the amount invested. This calculation has been done on the basis of average interest of 12 percent. If the interest is better than this then the amount can be even higher. Whereas if you increase the investment amount by 5% every year during these 30 years, then you will invest a total of Rs 7,97,266 in 30 years and after 30 years, at the rate of 12%, you can make up to Rs 52,73,406.
