SIP Calculation — Step-by-Step Guide to Get ₹4,80,000 in Just Few Years

Currently, mutual funds are being widely invested. The minimum estimated return can be 12 to 14 percent. However, this return depends on market fluctuations. Today, with the help of SIP calculation, we will understand that if someone makes a SIP of Rs. 4,000 per month for 10 years, then what will be his total fund.

If an investor makes a SIP of Rs. 4,000 per month for 10 years, according to the 12 percent return, his total fund will be Rs. 9,29,000. In these 10 years, his total money will be Rs. 4,80,000, out of which the return will be Rs. 4,49,000.

What is SIP?

We also call SIP a Systematic Investment Plan. As its name suggests, it is a method of investing a fixed amount of money regularly for a specific period of time. In SIP, you get many benefits, which are not usually available in any other investment method.

Advantages

With SIP, you can start investing from Rs 100. There is no maximum limit. You can increase the SIP amount if you want. Similarly, you can stop SIP at any time if you want. It does not have a time limit like FD or RD, you can invest it for as long as you want.

Disadvantages

With SIP, your money is invested in mutual funds. The returns from these funds depend on the market fluctuations.