The stock market has disappointed investors this year. Despite this, investors doing SIPs have their faith in the market. The reason for this is that they know that they will get strong returns in the long term.
Systematic Investment Plan (SIP) has become increasingly popular among small investors . In the last few years, the number of people doing SIP has reached crores. The reason for this is that it is possible to accumulate a large fund from a small amount. Today we are telling you that if you want to create a fund of Rs 4 crore in 12 years, then how much amount will you have to do as monthly SIP?
You will have to invest Rs 1.30 lakh monthly
If you want to deposit Rs 4 crore in 12 years, then let us tell you that every month you will have to do a SIP of Rs 1 lakh 30 thousand. Let us tell you that you will invest Rs 1,87,20,000 in 12 years. This will give a return of 12% which is easily possible, so you will deposit Rs 4,00,52,427 after 12 years. There is a possibility of increase or decrease in the investment amount because there is no fixed return in SIP. It depends on the market movement. If the market is booming then good returns. If there is a slowdown then low returns are possible.
Which mutual fund schemes to choose
You can easily achieve your goal by investing this SIP money in 5 different mutual fund schemes. You can include growth-oriented flexi-cap funds, value-oriented flexi-cap funds, momentum index funds, contra funds and growth-oriented mid-cap funds in your portfolio. This will help you diversify across different market caps, helping your portfolio generate better risk-adjusted returns. Remember to keep a buffer period of about a year or two at the end of your time horizon, and stick to investing only in good market conditions to maintain returns.
Invest for the long term
If you want to get maximum benefit from SIP, then invest for a long period. To get the best returns from SIP, invest for at least 7 to 10 years. Only then will you be able to get great returns on your investment.
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