Amid the ups and downs in the stock market, a large number of people are still investing in mutual fund SIPs. Common investors in the country are putting money into SIP regularly. This is because SIP helps in building a big fund over the long term.

Yes, SIPs are linked to the stock market, so there is some risk. But over time, they usually give higher returns, and investors also benefit from compounding, which grows their money faster.

Today, let’s understand how much fund you can create if you invest ₹5,000 every month in an SIP for 15 years.

Things to Know Before Starting SIP

Before starting an SIP (Systematic Investment Plan), there are some important things to keep in mind. SIP works best when you invest for a long time. The longer you stay invested, the more benefit you get. This is because compounding helps your money grow faster over time.

Also remember, SIP returns are not fixed. They change depending on how the stock market performs. Along with this, you also have to pay capital gains tax on the profits you earn from SIP. That is why it is better to invest for a long period to reach your goal and get better results.

How Much Will You Get by Investing ₹5,000 Monthly?

Now let’s see how much money you can get if you invest ₹5,000 every month in SIP for 15 years.

  1. If you get an estimated return of 12% per year, then your total fund will become around ₹23.79 lakh.
  2. If the return is 15% per year, your fund will grow to around ₹30.81 lakh.
  3. If the return is 18% per year, the total amount will become around ₹36.69 lakh after 15 years.

This shows that a small monthly investment can turn into a big fund in the long run, thanks to compounding.

Disclaimer

This article is written only to share information. Before making any kind of investment or taking any financial step, please talk to your financial advisor. Timesbull will not be responsible for any kind of loss or risk.