A large number of investors in India avoid the ups and downs of the stock market. Mutual funds are a promising option for such investors. Here, investors invest their money not directly but through the expertise of a fund manager in the shares of various companies. This reduces risk and increases the likelihood of better returns in the long run.
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Starting Small and Achieving a Big Goal
Many people think that accumulating crores of rupees requires a huge amount of money, but in reality, this is not the case. A disciplined SIP plan can change this thinking. For example, even if you start investing just Rs 2,000 per month, you can still build a strong fund over the long term.
Long-term is Key
Investing always requires patience. If you are a new investor and aim to continue SIPs for at least 30 years, the magic of compounding can multiply your money. This characteristic makes mutual funds a reliable option for long-term investors.
Potential Returns and Projected Profits
Suppose your investment generates an average annual return of 15%. At this rate, investing ₹2,000 per month for 30 years could result in a total corpus of approximately ₹1.40 crore. This means that a small amount and consistent investment could make you a millionaire.
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Points to consider when determining returns
It’s important to keep a few things in mind when investing. After selecting your investment category, look at the average returns for that category. If you’re interested in a particular scheme, check its SIP return history and ensure that the chosen scheme aligns with your goals.
Every investor has different goals, so understand your financial strategy and risk tolerance before investing in any mutual fund. Seeking guidance from investment experts is always a wise decision. Mutual funds are subject to market risks, so make decisions wisely and cautiously.