SIP Calculator: If you’re considering investing, this news could be very important for you. We’re talking about an investment method that could help you become a millionaire in 10 years. We’re talking about mutual funds. In recent years, the number of new investors in the Indian mutual fund industry has grown rapidly. While previously, ordinary investors avoided the stock market or mutual funds, now a large number of ordinary investors are choosing to invest through SIPs.
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This increase in new investors has resulted in a significantly greater flow of investment into the mutual fund industry. SIPs are considered a highly effective and disciplined investment option for building a large corpus over the long term. Therefore, it’s important to understand how much monthly investment is required to achieve the goal of ₹1 crore in 10 years.
Keep this in mind before investing in a SIP
Before investing in a mutual fund SIP, it’s important to understand that returns are not constant. SIP returns depend directly on the stock market’s movements. Returns are better when the market is bullish, while losses are more likely during a downturn. However, long-term investments significantly reduce risk, and earnings grow faster due to compounding. Furthermore, capital gains tax is levied on SIP profits, so maintaining investments for a long period is considered the most prudent step to achieve your goals.
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This is how you can build a fund worth Rs 1 crore in 10 years
The biggest benefit of SIPs is compounding. The longer the investment lasts, the larger the fund can be. If you earn an estimated return of 12 percent per year, you would need to invest approximately Rs 45,000 per month to build a fund worth Rs 1 crore in 10 years. At the same time, if you get an estimated annual return of 15 percent, then investing around Rs 39,000 per month will be enough to achieve the same goal.
