SIP Calculation: Previously, people were hesitant to invest in mutual funds. They thought they were only for knowledgeable investors. But now the situation has changed. Due to attractive returns and a simple investment process, even ordinary investors are considering investing in mutual funds. SIP, or Systematic Investment Plan, has made the world of investing easier. Investing in mutual funds doesn’t require a large amount. Now, you can start investing with just 100 rupees and build a substantial fund over the long term.
Build a fund worth lakhs with SIP
If someone makes a 1000 rupee SIP every month and earns an annual return of 12%, they can build a fund worth approximately 5 lakh rupees in 15 years. This means that even with a small amount, if you invest regularly, you can build a substantial fund in the future. The biggest advantage of SIPs is that they allow small investments to accumulate into large sums over time.
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Why the Right Mutual Fund is Important
Calculating SIPs is easy, but the real challenge lies in choosing the right mutual fund. Experts advise investors to consider several factors before choosing a fund. They argue that investors should not invest in a fund solely based on past returns. Instead, investors should choose their investment horizon and risk profile based on their investment horizon
This calculation is also important.
If your investment is based on the long term, market fluctuations are possible. However, equity mutual funds may be a good option for you. If you plan to invest for 2 to 3 years, you can choose a fund based on your investment goals, such as marriage, education, or other financial objectives.
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Focus solely on returns
Many investors choose funds based solely on returns. They consider the returns generated over the past 1, 3, and 5 years. According to experts, investors should consider rolling returns when selecting funds. This provides an idea of a fund’s returns during fluctuations.
Disclaimer: The information provided here on mutual funds is not investment advice. TimesBull is not providing investment advice. The stock market can be risky, so seek expert advice before investing.