Investment: Homemakers don’t have an income, yet they excel in saving. While overseeing the household, they handle their allowance quite wisely. Typically, women use their savings for household necessities or to pursue certain hobbies. However, by saving and investing only Rs 1000 each month, you can accumulate a total of Rs 10,00,000 for yourself. This indicates that you can accumulate a significant sum for yourself by simply saving a little money while at home. Grasp the method.
SIP Investment
Currently, mutual funds are regarded as one of the top choices for investment. Although associated with the market, the risk involved is deemed lower than that of direct stock investments. You can begin investing in mutual funds via SIP with only Rs 500. In this, you enjoy the advantage of compounding, meaning you earn interest on both the interest and the principal. In this scenario, the more extended your SIP runs, the greater the profit you will achieve. Typically, an interest rate of 12 percent is offered, and it may occasionally rise to between 15 and 20 percent. To achieve higher profits in this, you need to invest for an extended period. By investing in it for 15 to 20 years, you can achieve substantial gains even with a modest investment and become a millionaire.
See the calculation
If you begin to invest Rs 1000 each month in mutual funds via SIP, you will end up investing Rs 12,000 every year. If you maintain this investment for 20 years, you will have invested a total of Rs 2,40,000, but at an interest rate of 12 percent, you will receive Rs 6,79,857 solely as interest. Thus, after 20 years, you will accumulate a sum of Rs 9,19,857, which is nearly Rs 10 lakh.
But, it is necessary to remember that Mutual Funds are subject to market risks.