Do you want to invest on something for better profit? But can’t figure out where to invest money? Then this article is for you. Experts says, if anyone looking for an option then they should have invest on SIP. Any investor invests in a scheme only after estimating the profits. This is the reason why SIP has become very popular for some time. The reason for this is the returns on SIP. Through SIP, you invest in mutual funds.
SIP invest
Despite being a market linked scheme, it does not have the risk that is directly incurred when investing money in the stock. According to experts, SIP gets an average return of 12 percent. But if you give a booster dose of annual top-up in SIP, then your SIP can become a rocket and increase your money very fast year after year. Here’s what you need to do for this.
What is the booster dose of Top-Up in SIP?
Usually, when you start a SIP, you invest a fixed amount in it every month. Suppose you started an SIP of Rs 2,000 for 10 years, then you run it for 5, 10, 20 years, you will deposit only Rs 2,000 every month, but Top-Up SIP is a facility in which you can add some more amount to your regular SIP. It can be understood that you have chosen the option of Rs 2,000 monthly SIP at the beginning of your job. As your salary is increasing every year, in that proportion, you can also top-up some amount every year in SIP.
Suppose you start a monthly SIP of 2,000 and increase it by 10% every year. For example, ran an SIP of 2,000 a year and after the year was over, 10% of Rs 2,000 i.e. Rs 200 was increased to it and this SIP was increased to Rs 2,200. The next year, you increased 10% of Rs 2,200 i.e. Rs 222 and made this SIP Rs 2,422. In this way, every year you have to increase the amount by 10 percent of the current amount of SIP.
See how money will grow rapidly year after year
Suppose you start SIP from Rs 2000 and run this SIP for 10 years with a top-up of 10%, then your total investment will be Rs 3,82,498, if calculated with an average return of 12%, you will get an interest of Rs 2,92,367 and after 10 years you will get a total of Rs 6,74,865. But if you continue this SIP for 15 years with top-up, then the total investment will be ₹ 7,62,540, the interest on it will be ₹ 9,74,230 and in 15 years you will get a total of ₹ 17,36,770.
At the same time, if you continue investing for 20 years with this pattern, then you will invest a total of Rs 13,74,600, but at the rate of 12 percent, you will get an interest of Rs 26,03,143 and after 20 years you will get Rs 39,77,743. At the same time, on continuing investment for 25 years, the total investment will be Rs 23,60,329, interest of Rs 61,90,763 and after 25 years the total investment will be Rs 85,51,092.
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