For the average person, making ends meet with their salary can be tough, and it often doesn’t leave much room for chasing dreams. That’s where a Systematic Investment Plan (SIP) comes in as a solid option for those looking to boost their income. With SIP, you can turn small savings into significant returns.
If you play your cards right with SIP, it can yield great returns over time, tailored to your financial goals. Let’s break down how you could potentially make up to Rs 45 lakh by investing just Rs 150 daily in the market.
You’ve probably seen the usual disclaimer in SIP advertisements: “Mutual fund investments are subject to market risks; read all scheme-related documents carefully.” SIPs involve investing in mutual funds, which are tied to the stock market. This means that sometimes, returns can be less than expected based on market fluctuations. But don’t worry too much—qualified fund managers oversee mutual funds, so the chances of losing your money are pretty low.
So, how do you reach that Rs 45 lakh mark by putting in Rs 150 every day?
Let’s look at an example. If you choose a SIP plan, you’d be putting in Rs 4,500 each month. That breaks down to Rs 150 a day, which totals Rs 54,000 over a year. To really see good returns, you need to commit to a long-term investment. If you stick with it and invest Rs 4,500 monthly for 20 years, you’ll have contributed a total of Rs 10.80 lakh to your SIP.
After those 20 years, your SIP will mature. Typically, long-term SIP investments can yield around a 12% annual return. In this scenario, you could end up earning Rs 34,16,166 on your investment after two decades.
You’ll also earn interest on this, bringing the total to Rs 44,96,166. So, in the long run, you can expect to see around Rs 45 lakh after 20 years.
Here are some tips to make money in the market:
Start investing early to maximize your long-term returns.
Get to know the magic of compounding and gradually increase your investment amount.
Staying disciplined and consistent is key; make sure to invest a set amount every month at the same time.
Do your homework on the sector you want to invest in—research and analysis are crucial.
Timing your investments is also important.
Keep these precautions in mind:
1. Set clear financial goals and invest accordingly.
2. Avoid investing without doing your research.
3. Don’t put all your eggs in one basket.
4. It’s not wise to pull out your money just because the market is doing well.
5. Regularly check your portfolio online to stay updated.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.