To secure a brighter future for their children, many parents set aside a portion of their income for investments. In India, If you’re aiming to fund your children’s education, marriage, or dream home, a Mutual Fund SIP can be an excellent choice. With the power of long-term investing, SIPs can significantly grow your wealth. Let’s explore how you can start a ₹5,000 SIP and potentially accumulate crores over the next 25 years.

Nowadays many companies are committing fraud regarding people’s money. Without a solid understanding of SIPs and investing, it can be risky to venture into the market. This article will guide you on how to start a ₹5,000 SIP and potentially reap significant rewards in the long run.

The Longer You Run SIP, The More Profit You Earn

Running a SIP (Systematic Investment Plan) for a longer period increases your profits. The power of compounding in SIP benefits you more in the long term. You can collect a corpus of crores in 25 years by starting with just ₹5,000. However, you need to increase your SIP amount yearly, a process called “step-up.”

Start with Just Rs 5000 and Watch It Grow

To create a fund of crores in 25 years, you can start with just Rs 5000 in SIP. However, to achieve this goal, you will need to increase your SIP every year. This increase is known as a “step-up.”

A 10% Step-Up Can Create a Crore Fund

If you increase your SIP by 10% each year, you can build a fund worth crores over 25 years. For example, if you get an estimated return of 12%, your total fund in 25 years could be around Rs 2.13 crore. This includes your total investment of Rs 59 lakh and an estimated return of Rs 1.54 crore.

Higher Returns Can Grow Your Corpus Faster

If your average annual return is 15%, your fund could grow to ₹3.29 crore in 25 years.

Be Aware of Market Risks

  • SIP investments are subject to stock market risks.
  • Returns are not guaranteed and can fluctuate based on market performance.

Tax on SIP Returns

  • The returns you earn from SIP are taxable.
  • Plan your investments considering tax implications.

Disclaimer: For any financial investment anywhere on your responsibility, Times Bull will not be responsible for it.

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A sports journalist driven by passion and dedication, I blend my love for writing and games seamlessly. Currently with Timesbull and having honed my craft at Sportskeeda, Cricreads, and Athlete Fortune,...