SIP Calculation: Many people today believe that they can never build a large corpus with a limited income. But the power of financial discipline tells a different story. Small savings, if made regularly and over a long period of time, have the potential to reach crores. Mutual fund SIPs are an easy and convenient way to strengthen this discipline. By starting with a small amount and continuing it over a long period, the effect of compounding multiplies your capital.
Start investing with just ₹200 a day
People often think that saving ₹200 is insignificant, but this amount can become a strong financial security in the future. A ₹200 daily SIP, or ₹6,000 a month, can create a substantial corpus if done over a long period of time. The beauty of investing in mutual funds is that you can choose the amount according to your capacity and even increase it over time.
Compounding will strengthen your investment
The biggest advantage of long-term investing is compounding. The interest earned on your investment also earns interest over time. This is why even a small amount multiplies when invested over time. The earlier you start with a mutual fund SIP, the better the results.
Build a corpus with a daily SIP of Rs. 200
If you save Rs. 200 every day and invest it in a mutual fund, it becomes Rs. 6,000 per month. Assuming a 12 percent expected return and a 20-year tenure, your total investment amount will be Rs. 14.40 lakh. However, the maturity amount will reach approximately Rs. 55.19 lakh. This amount can help you achieve a major financial goal.
Benefits of Starting Young
If someone starts investing at the age of 20–22, they will have a strong corpus by the age of 40–42. This money can be used for larger expenses like buying a house, a car, or your children’s education. This is the secret to turning small savings into big money—long-term and discipline.