SBI: If you are considering entering the investment arena but are unable to commit a substantial sum, the Jannivas SIP scheme offered by the State Bank of India (SBI) presents an excellent opportunity. This scheme allows you to invest a modest amount of just Rs 250 each month, which can accumulate significantly over time.
Jannivas SIP scheme
It is particularly tailored for first-time investors and those residing in rural and semi-urban regions. With SBI Jannivesh SIP, you have the flexibility to select a daily, weekly, or monthly investment schedule that suits your needs. This initiative is a collaboration between SBI Mutual Fund and the State Bank of India, aimed at facilitating small investors’ access to mutual funds.
Benefits
One of the primary benefits of investing in mutual funds is the potential to build a substantial fund from small contributions. By participating in this scheme, you can invest in the SBI Balanced Advantage Fund, which strategically allocates resources between equity and debt.
A pertinent question arises: how can one accumulate Rs 17 lakh by investing merely Rs 250 monthly? The key lies in long-term investment and the power of compounding returns.
For an investor contributing Rs 250 each month over a span of 30 years, assuming an average annual return of 15%, the financial outcomes would be as follows:
Total Investment: Rs 90,000
Estimated Returns: Rs 16,62,455
Total Funds: Rs 17,30,000
If the same investment is maintained for 40 years, the figures would be:
Total Investment: Rs 1,20,000
Estimated Returns: Rs 77,30,939
Total Funds: Rs 78,50,939.