Everyone wants financial stability in life, but having money alone is not enough. Proper knowledge and understanding of investments are equally important. Many people, even with a good income, fail to achieve financial freedom because they do not use their money wisely. On the other hand, people with limited income can build wealth over time by investing smartly.
Today, there are many investment plans available in the market. It is important to know which one suits you best. Among them, SIP (Systematic Investment Plan) in Mutual Funds is considered the best option for those who want to start small and build a large fund in the future.
How to benefit from Mutual Fund SIP?
SIP is a simple investment method where you invest a fixed amount in a mutual fund at regular intervals. You can start with just ₹250 or ₹500 per month. As your income grows, you can increase your investment amount. Market experts say SIP can give an average return of up to 12% per year in the long run.
SIP of ₹2,000 can create a fund of ₹1.59 crore
If you invest ₹2,000 per month through SIP and continue for 30 years, increasing the amount by 10% every year, you can build a fund of about ₹1.59 crore. This is possible only if you stay invested and don’t stop in between. The biggest advantage of SIP is that the earlier you start, the higher the benefit from compounding.
Why long-term investment is beneficial
The true benefits of SIP come with time. Regular small investments can grow into a big amount through compounding. It builds financial discipline and helps you see market ups and downs as opportunities instead of risks.