In today’s era, everyone wants their hard-earned money to grow and be safe. If you are also thinking of investing in mutual funds, but are afraid of investing more money, then SIP (Systematic Investment Plan) is an excellent option.
The biggest feature of SIP is that you can start with just a small amount like ₹ 250 and can increase the investment amount anytime at your convenience. In the long term, the power of SIP can also make you a millionaire. So let’s know how to create a fund of ₹ 1 crore through SIP and how much you will have to invest for this.
The magical figure of ₹ 1 crore
In SIP, you get the tremendous benefit of compounding. Compounding means that the interest received on your investment is also reinvested and interest is also received on that. The longer this cycle continues, the faster your money grows. So, if you want to create a fund of ₹1 crore, you need to stay invested for a long time. The more money you invest, the sooner you will achieve the target of ₹1 crore.
Read More:- PF Auto-Settlement Limit Increased! Withdraw Up to ₹5 Lakh Without Hassle
Read More:- Inflation Shock! Diesel Price Hiked by ₹2, Expect a Rise in Daily Expenses
₹2000 SIP to ₹1 crore, Know how many years it will take
If you invest ₹2000 every month in a mutual fund SIP, then as per the estimated return of 12 percent, a fund of ₹1 crore will be ready in about 35 years. In these 35 years, your total investment will be around ₹8,40,000, and you will get an estimated return of ₹1,01,81,662.
₹5000 SIP to ₹1 crore, Big fund in less time
If you invest ₹5000 every month in a mutual fund SIP, then with an estimated return of 12%, a fund of ₹1 crore will be ready in about 30 years. In these 30 years, you will deposit ₹18 lakh, and after 30 years you will get ₹1,54,04,866 crore.
₹1 crore from SIP of ₹10,000, Get your goal in even less time
If ₹10,000 is invested every month in a mutual fund SIP, then to make ₹1 crore you will have to invest for about 25 years. The estimated return is considered to be 12%. In these 25 years, you will invest ₹30 lakh. After 25 years, at a rate of 12% return, you will get ₹1,70,022,066 crore.
Read More:- Post Office RD Scheme: Start Saving with ₹100 & Earn Guaranteed Returns