SIP Investment: If you want to create a fund of Rs 1 crore for yourself in the future, then start planning for it right now. By starting at the right time, by using regular and compounding interest properly, investors can quickly create a fund of Rs 1 crore in a short time.
SIP Investment: If you want to create a fund of Rs 1 crore for yourself in the future, then start planning for it right now. By starting at the right time, by using regular and compounding interest properly, investors can quickly create a fund of Rs 1 crore in a short time. Most experts believe that a large fund can be easily created with regular investment and in the long run. A monthly equity mutual fund SIP of Rs 7000 can help you in this.
Suppose an investor does a SIP of Rs 7,000 every month. He gets an average annual return of 12%. This interest rate has been kept on the basis of the performance of equity mutual funds. So his fund can reach Rs 1 crore in about 22 years.
How will the target of Rs 1 crore be achieved?
- Monthly SIP: 7,000
- Investment period: 22 years
- Total investment: Rs 18.48 lakh
- Estimated return: Rs 81.52 lakh
Total fund: The fund of Rs 1 crore will be available only on the return of compound interest. With time, your fund grows rapidly due to compounding. The sooner you start, the more benefit you will get. For example, if you start at the age of 25, then you can create a fund of Rs 1 crore in 47 years, but if you start at the age of 35, then this target will be achieved at the age of 57.
Increasing the amount of SIP will reduce the time
- SIP of Rs 10,000 per month: Rs 1 crore in 17 years
- SIP of Rs 15,000 per month: Rs 1 crore in 12 years
However, these figures are estimated. Returns may vary due to market volatility. Therefore, financial advisors advise investors to divide their investments into different asset classes such as equity, debt, gold and keep reviewing the portfolio from time to time. So that, investment continues in the right direction according to the market and your target.
Note: Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Before investing, definitely consult a certified financial advisor.
