SIP Calculation – Investors are showing interest in mutual funds these days, the reason for this is that it gives attractive returns. SIP is usually chosen for investing in mutual funds. Because under this, you can create a big fund by investing money in small installments.
Today through this article we will know that if a monthly SIP of Rs 2000 is done, then by when will a fund of Rs 5 lakh be ready. Let’s see its calculation.
Investment amount- Rs 2000 per month
Return- 12 percent
If a person invests Rs 2000 every month in mutual funds, then he will get Rs 5 lakh on maturity after 11 years at the rate of 12 percent return. In these 11 years, the principal of the person will be Rs 2,64,000. However, this return depends on the fluctuations of the market.
Mutual Funds
Under Mutual Funds, investments are made in different asset classes (bonds, debt and equity). Hence it cannot reflect the ownership of any one company.
You can further diversify your portfolio by investing in different mutual funds.
Due to higher diversification, the risk in it is lower than in shares.
In this, the fund is managed by a mutual fund manager. So even if you have less knowledge of the market, there is not much loss.
Share Market vs Mutual Fund, which is better?
If investors want, they can invest in both the stock market and mutual funds. If you do not want much risk and do not know much about the stock market, then investing in mutual funds is right. If you have sufficient knowledge of the market, then the stock market will be right.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.