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Home Personal Finance SIP Calculation: Deposit only ₹ 500 daily, you will get 1.5 crore...

SIP Calculation: Deposit only ₹ 500 daily, you will get 1.5 crore fund, View Calculations

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SIP Calculation: Deposit only ₹ 500 daily, you will get 1.5 crore fund, View Calculations

SIP Calculator: Mutual Fund SIP is one such investment option, through which you can get equity-like returns on regular small savings. If you make small savings a habit of investing every month, then you can make a corpus of lakhs and crores in the long term.


SIP Calculator: Mutual Fund SIP is one such investment option, through which you can get equity-like returns on regular small savings. If you make small savings a habit of investing every month, then you can make a corpus of lakhs and crores in the long term.

SIP Calculator: Mutual Fund SIP is one such investment option, through which you can get equity-like returns on regular small savings. If you make a habit of investing your small savings every month, then you can make a corpus of millions and crores in the long term. For example, if you save Rs 500 daily and choose the option of investing in SIP every month, you can easily build a corpus of 1.5 crores in the next 20 years. Most equity mutual funds have had an average return of 12 per cent per annum over the long term. The advantage of keeping the SIP for a long period is that you get to see the strong benefit of compounding.

Power of ₹500 Savings Daily
According to the SIP calculator, suppose you save Rs 500 every day, then your savings become Rs 15,000 every month. If you do a SIP of Rs 15,000 every month and the returns are on an average 12 per cent per annum. So you can create a fund of 1.5 crores in 20 years. In this, your total investment will be Rs 36 lakh and estimated wealth gain will be Rs 1.1 crore (Rs 1,13,87,219). In this, know that if the annual average return decreases or increases, then your estimated fund may also go up or down.

If adjust the inflation rate at 6% per annum
According to the SIP calculator, if you maintain an investment of 15,000 every month for 20 years, then at the rate of 12 percent, your fund can become 1.5 crore. But, it is worth noting here that you will also have to deal with inflation every year. That is, what is your return and what is the inflation rate? If you adjust the inflation rate with the annual average return, then you will get an estimate of how much profit you can actually get.

Assume that the annual average inflation rate during the investment period of 20 years is 6 per cent. According to the SIP calculator, if 15,000 monthly investments last for 20 years, an average annual return of 12 per cent and an average inflation rate of 6 per cent, your estimated corpus would be Rs 69.7 lakh. Your investment in this will be only Rs 36 lakh. Whereas, the estimated wealth gain will be Rs 33.7 lakh.

A systematic way of SIP investment
Amit Kumar Nigam, Director, BPN Fincap says that SIP is a systematic way of investing. There are many such funds which have an average annual SIP return of 12 per cent over the long term. It must be noted here that the returns of the previous years are an indication. Even in future, you will get this much return every year, it is not guaranteed.

The corporation says that the investor should make an investment decision after looking at his income, target and risk profile. The specialty of SIP is that you can start investing with just Rs 100 per month. Through this, you can easily know and understand the investment habit, risk and the assessment of the return on it.

(Disclaimer: SIP calculations here are indicative. Actual returns may vary. Investments in Mutual Funds are subject to market risks. Before investing, read all the documents carefully and consult your advisor.)

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