SIP Calculation: Due to rising inflation, people are struggling to save, let alone invest. But there’s no need to panic. We’re going to tell you about an investment scheme where you can accumulate a substantial corpus by investing just ₹200. In fact, we’re going to tell you about SIP, where you can accumulate a corpus of crores of rupees by investing just ₹200.
If you make small investments consistently over the long term, you can accumulate a substantial corpus. People have achieved significant goals through SIPs in mutual funds. Compared to other asset classes, mutual funds offer the flexibility to invest according to your convenience and capacity.
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Invest just ₹200
If you save just ₹200 daily and invest in mutual funds, you can accumulate a substantial amount over the long term. This can amount to lakhs or even crores of rupees. Investing in mutual funds over the long term also benefits you from compounding. However, while mutual fund investments involve considerable risk, they also offer higher returns. Let’s explore the calculations.
Calculation of a SIP of Rs. 200
If you invest Rs. 200 every day, you invest Rs. 6,000 per month. This yields an estimated annual interest rate of 12%. If you invest for 20 years, the total investment will be Rs. 14.40 lakh. After returns, you will receive a total of Rs. 55.19 lakh.
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If you save Rs. 200 between the ages of 20 and 22 and continue investing in mutual funds, by the time you are 40 or 42, you will have accumulated a substantial amount in your account. You can use this amount for any major expense. For example, you can spend money on buying a house, buying a car, or on children’s education.