SIP is now a hotcake in the investment market. Many financially conscious people are trying to invest in SIP. Many investors also start investing in mutual funds. But due to financial constraints and various other reasons, they cannot continue investing.
If a person wants, then by investing just Rs. 1000 per month, a person can become a millionaire. It is not just a matter of words, a person can really save Rs. 1 crore.
The rule of SIP is that the investment in a specific fund should be made for the long term. If you invest for a long time, you will get compound interest and there is a possibility of earning lakhs of rupees.
Also Read –SIP or PPF – Where Can You Get Higher Interest? Find Out Here
Average 20% return in 30 years
Some funds also give 20 percent return per year in SIP. The latest example of this is the mid-cap fund. Franklin India Mid Cap Fund has given investors an average return of 20 percent in the last 30 years.
20% return on a SIP of Rs 1,000
According to the SIP calculator, if a person had started an SIP of Rs 1,000 per month in this fund 30 years ago, he would have also received a return of 20 percent.
Read More –PPF Extension Rules- How many times can an account be extended in a 5-year block?
How much money will be available after 30 years?
If you invested in this fund for 30 years, the total investment would have been Rs 3,60,000. On which interest would have been earned on Rs 1.53 crore. As a result, the total money would have increased to more than Rs 1.56 crore.
Investors should be careful
Investors should be careful while investing in any fund or share. It is essential to take the help of a financial advisor before investing.