SIP Investment – Mutual funds are becoming quite popular among investors due to their excellent returns. Mutual funds give a minimum return of 12 to 14 percent. However, the return obtained in this depends on the fluctuations of the stock market.
Today we will know that if you invest Rs 5000 every month in SIP, then for how long will you have to invest to become a lakhpati and crorepati.
When will you become a millionaire?
We have considered a return of 12% during the calculations, however this return may vary depending on market fluctuations. At the rate of 12% return, if a person invests Rs 5000 every month, he can become a millionaire in 2 years. The investment amount in these 2 years will be Rs 1,20,000, along with this the return from the mutual fund will be Rs 15,325. On maturity, you will get a total of Rs 1,35,325.
When will you become a millionaire?
If it is a question of becoming a millionaire, then if a person invests Rs 5000 every month through SIP, then he can become a millionaire after 27 years. At the rate of 12 percent return, after 27 years the person will get Rs 1,08,11,565 on maturity.
With this, the amount invested by you in these years will be Rs 16,20,000 and the return received will be Rs 91,91,565.
What are the benefits?
Investing in SIP also gives the benefit of compounding. So if you are investing money for a long time, then you get maximum benefit from SIP. You can invest as much as you want in SIP. There is no limit on investment in it. However, keep in mind that there should be diversification in the portfolio. Which means investing in different asset classes.