Today, everyone is worried that their future should be secure. Especially securing your future financially. But people think that more money will be needed for investment. However, this is not so, because SI, i.e. Systematic Investment Plan, refutes this. You can create a good fund by investing even Rs 500 every month in it.
Market fluctuations do not affect IP, and the benefit of compounding interest is available, so that a big fund can be created by investing small amounts. If you invest in SIP through mutual funds, then it gives an annual return of per cent. Let us understand how the funding fund will be created after 5 years.
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If you invest Rs 500 every month in a SIP, then the total investment for 5 years or 60 months will be Rs 30000. This investment gives a 12 per cent annual return. According to this, you will have a total of Rs 42000. In this, Rs 12000 will be your profit,t i.e. income.
How much security is available in SIP
SIP is a very safe way of investment, because small savings are invested in it, so that the fluctuations of the market do not have any effect. But the risk and quality of the fund in which the SIP money is being invested have to be understood.
For example, if you choose an equity fund, it is directly related to the market. According to this, the risk is high, but the return is quite good. No,w if you choose a debt fund, the risk is low, but the return is also low.
SIP continues even during a downturn in the market, due to which your units are available at a lower price and can be more profitable in the long term. Experts say that by investing in SIP for a long time, you can create a good fund. However, there is no guarantee due to being associated with the stock market.