SIP investment: In today’s time, proper planning and investment of money has become very important. People want their hard-earned money to work for them for a long time and make their financial position strong in the future. One such great way is to invest in mutual funds through SIP. If you are wondering how much benefit can be gained from even small amounts, then you will be surprised to know that with just Rs 1000 SIP every month, you can create a fund of lakhs of rupees after 10, 20 or 30 years. Come, let us tell you in detail about this investment journey.
What is SIP and why is it important?
SIP i.e. Systematic Investment Plan is a method in mutual funds in which you invest a small amount regularly every month. This systematic investment makes your amount very big over time. The biggest advantage of SIP is that you can start investing without the hassle of any large amount and the impact of market fluctuations is also reduced.
What will happen with a SIP of Rs 1000 in 10 years?
If you invest only Rs 1000 every month in SIP and keep doing it continuously for 10 years, then your total investment amount will be Rs 1,20,000. But, if we assume that you get an average return of 12 percent annually, then after 10 years the return on your investment will be around Rs 1,04,036. According to this, you will have a total fund of about Rs 2,24,036. This small start will also bring great benefits for you.
How much will your SIP amount increase in 20 years?
If you are wondering what will happen to the amount made in 10 years, then know that if you keep doing this SIP for 20 years, then your fund will more than double. By investing Rs 1000 per month for 20 years, you will invest a total of Rs 2,40,000. But with a return of 12 percent, your fund will reach around Rs 9,19,857 after 20 years. This amount can become a strong foundation to make your dreams come true.
The magic of SIP in 30 years
Now let’s talk about the longest period, i.e. 30 years. If you invest Rs 1000 every month in SIP continuously for 30 years, then your total investment amount will be Rs 3,60,000. But the miracle is that with an average return of 12 percent, your amount will increase to Rs 30,80,973. This amount of more than Rs 30 lakh will prove to be a wonderful capital for your child’s education, buying a house or a comfortable retirement.
Small investment, big profit
It is clear from here that even if you start with small amounts, investing continuously and patiently can give you big benefits in the long term. Patience and regularity are the biggest weapons in SIP. If you make the right investment at the right time, you too can turn your small savings into crores.
So, if you have not started a SIP yet, think about it today and start securing your future with a SIP of just Rs 1000 every month. The gradually increasing profits in this investment journey will lead you to happiness and financial security.