Even if you invest only 500 rupees every month through SIP, then you can easily create a fund of lakhs with even this small amount. However, for this, you have to maintain your investment continuously for about 20-30 years.
New Delhi: Investment in Mutual Fund SIP has grown very fast in the last few years. A large number of people are getting attracted to invest in SIP investment. The data of Association of Mutual Funds in India (Amfi) also shows that, in the month of August this year, the number of SIP accounts has reached a record level of 5.71 crores. At the same time, an investment of Rs 12,693 crore came in August through SIP. It is clear from these SIP data that the confidence of retail investors in mutual fund schemes remains strong and are continuously investing their small savings every month. If you also want, you can get returns of lakhs even with less investment of Rs 500 through SIP.
You can earn lakhs from 500 rupees
Even if you invest only 500 rupees every month through SIP, then you can easily create a fund of lakhs with even this small amount. However, for this, you have to maintain your investment continuously for about 20-30 years. According to the SIP calculator, if you invest Rs 500 every month for 20 years, then you can build a corpus of up to 5 lakhs with an annual return of 12 per cent. During this your investment will be only Rs 1.2 lakh, while you will get a profit of Rs 3.8 lakh. If you continue this investment for another 10 years, then you will also get tremendous benefit of compound interest. That is, in 30 years, you can make a fund of up to Rs 18 lakh with an investment of Rs 500.
There are huge benefits of investing for a long time
Many investment experts recommend to continue investing in SIP for a long time. In a conversation with Zee Biz Hindi, AK 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. Let us also tell you that the SIP calculation given by us here is indicative. Your actual return may also be different from this.
Disclaimer: The SIP calculation here is indicative. Actual returns may differ. Investment in mutual funds is subject to market risks. Before investing, read all the documents carefully and consult your advisor.
