SIP Investment – We all want that we do not have to face financial problems after retirement. But for this it is very important to secure your financial future. This will reduce your stress as you grow older. To secure our future, we have to save. The sooner we start saving, the bigger the corpus we will be able to accumulate.

How to create a fund of Rs 1 crore?

If you do not invest your savings, it will have a negative impact. Because the value of money is decreasing year after year due to rising inflation. For example, we cannot buy as many things today with Rs 1000 as we could 10 years ago. Let us now tell you how you can create a fund of Rs 1 crore in 10, 15 or 20 years by doing minimum monthly savings…

You can earn a lot by investing in mutual funds

Financial experts believe that Mutual Funds (MF) are a great way to make money and beat inflation. You can invest in Mutual Funds (Mutual Funds 2025) every month or in lump sum. Through SIP (Systematic investment plan), you can invest a fixed amount in Mutual Funds every month.

 

Step-Up SIP

Step-up SIP is a systematic investment plan in which you increase your monthly investment by a certain percentage every year. For example, say 10 percent. In this way, as your salary increases every year, your investment will also increase.

Financial plan for a fund of Rs 1 crore:

Target Corpus: Rs 1 crore

Expected Return: 12% p.a.

Investment Mode: Monthly (SIP)

Step-up rate: 10% annual growth in SIP

Investment period: 10, 15 and 20 years

Let us assume a return of 12%

Looking at past data, equity mutual funds and index funds in India have given annual returns of 10-14 per cent over the long term. So we are assuming a return of 12 per cent here.

 

How much do you need to invest every month?

To create a corpus of Rs 1 crore in 10 years at a 12% return, you would need a monthly SIP of Rs 43,000 per month without step-ups. However, if you increase your SIP by 10% every year, you would need to invest Rs 27,000 per month initially.

Similarly, to create a corpus of Rs 1 crore in 15 years, you would need a monthly SIP of Rs 23,000 per month without step-ups. However, if you increase your SIP by 10% every year, you would need to invest Rs 9,000 per month initially.

Similarly, to create a corpus of Rs 1 crore in 15 years, you would need a monthly SIP of Rs 23,000 per month without step-ups. However, if you increase your SIP by 10% every year, you would need to invest Rs 9,000 per month initially.To raise a fund of Rs 1 crore in 20 years, you will need to do a monthly SIP of Rs 11,000 every month without step-up. However, with step-up, only Rs 4,800 monthly SIP will be required in the first year. But remember that the investment amount will have to be increased by 10 percent every year.

 

Where to invest SIP?

If you are thinking of investing through SIP (Systematic Investment Plan), then you need to know where and how your money will be invested. Usually SIP money is invested in mutual fund schemes – like flexi cap funds, large and mid cap funds, mid cap funds, small cap funds and index funds. These funds are selected on the basis of the size of the companies (market capital) and the risk taking capacity of the investor.

Index funds can give an average return of 12-14 percent annually. On the other hand, mid-cap and small-cap funds can give a compound growth rate (CAGR) of up to 18 percent in the long term, although there is more fluctuation in them.

 

Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.