Because of a good return possibilities, people are now interested to invest in SIP. But, everyone is not aware about the SIP calculation, which is to understand how much investment can bring how much money in return. To provide some idea, this article can help you a lot.
The ups and downs in the Indian stock market continue. Meanwhile, the common investor of the country is continuously increasing his investment in SIP. According to the latest data of AMFI, in September, investment of Rs 29,361 crore came in SIP, which was Rs 28,265 crore in August. In September, investment of Rs 30,421 crore has come in equity mutual funds. There is tremendous benefit of compounding with SIP. However, for this, investment should be continued for maximum time. Today we will know here how much fund can be created in 15 years if Rs 10,000 is deposited every month in SIP.
A SIP for 15 years
If you earn an estimated annual return of 12%, a SIP of ₹10,000 can generate a corpus of ₹47.59 lakh in 15 years. Furthermore, if you earn an estimated annual return of 15%, a SIP of ₹10,000 can generate a corpus of ₹61.63 lakh in 15 years. SIPs are considered an excellent investment option for generating substantial returns over the long term. However, there are some important points to keep in mind when investing in SIPs.
Stock market risk in SIP
Mutual fund SIPs never offer consistent returns and depend entirely on stock market fluctuations. If the market is bullish, you’ll see higher returns. Similarly, if the market declines, you may incur losses instead of profits. However, the risk of losses over the long term is significant. Furthermore, you’ll also be subject to capital gains tax on SIP returns. Therefore, it’s better and more beneficial to continue investing for a longer period of time to reach your goals.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.