SIP Investment: All parents set aside a portion of their income to save and invest for their children’s future well-being. If you are seeking a better investment option to secure your children’s education, marriage, and dream home, mutual fund SIP could be a suitable choice for you. Over time, substantial profits can be generated from a systematic investment plan (SIP). Learn how you can accumulate millions of rupees in 25 years by initiating SIP with Rs 5000. The profit increases as the SIP is run for a longer period.
Advantage in SIP leads to higher profits over time
In reality, compounding’s advantage in SIP leads to higher profits over time. To accumulate a sum of millions of Indian rupees over a period of 25 years, you can initiate a systematic investment plan (SIP) by investing only Rs 5000. In this scenario, you must increase your SIP amount annually. Step-up involves raising your SIP amount annually. By initiating an SIP with Rs 5000 and increasing by 10% each year, you can accumulate crores of rupees in 25 years.
If you receive a projected return of 12 percent, after 25 years you will accumulate Rs 2.13 crore in your fund. This consists of Rs 59 lakh invested by you and an expected return of Rs 1.54 crore. By receiving an annual return of 15 percent on average over this time frame, you could potentially create a fund of Rs 3.29 crore within 25 years.
Crucial to pay close attention
However, when investing in SIP, it is crucial to pay close attention to certain key factors. To begin with, it is important to remember that investing in SIP carries a significant amount of risk in the stock market. Furthermore, it is important to note that taxes must also be paid on any returns earned.
Desclimer: For any financial investment anywhere on your own responsibility, Times Bull will not be responsible for it.