Special Mutual Fund: The simplest and most powerful way to accumulate wealth is through SIP. The primary reason for this is compounding. The second reason is developing a habit of disciplined investing via SIP. Even the modest amounts built upon over a long period will develop into a vast amount of wealth.

A chartered accountant and investment expert states that if you invest ₹2,000 every month with an earning of 15.5% per annum returns, after 18 years you would have invested a sum of ₹4.32 lakh, and that investment would total to ₹23.5 lakh total.

Amazing Returns from Small SIP Investments

Similarly, he explained that investing ₹4,000, ₹6,000, and ₹8,000 per month can give returns of ₹47 lakh, ₹70.5 lakh, and ₹94.1 lakh respectively. However, he said anyone would be surprised to see the result of investing ₹10,000 per month. If you invest ₹10,000 monthly for 18 years, it can grow to ₹1.18 crore.

Why SIP is a Smart Investment Option

SIP teaches discipline in investment. In SIP, an investor puts a fixed amount of money into a mutual fund every month or every three months. SIP gives the benefit of rupee cost averaging. This means when the market falls, more units are bought at a lower price, reducing the average cost of investment. This helps protect the investor from market ups and downs.

If you want to invest, always do proper research and analysis before making any decision. This article is for educational purposes only. Timesbull does not provide any investment advice.