SIP Calculator: Currently, everyone is investing to secure their family’s future. If you are also thinking about investing and want to get maximum returns, the stock market can help you. The domestic stock market is currently experiencing fluctuations, although it is still trading near its all-time highs.

While the stock market has seen a decline in the last two days, which also affects the performance of mutual funds, Indian investors’ confidence in the market remains strong, and they are continuously investing through mutual funds and SIPs. So, let’s find out how much fund can be created in 20 years if an investor invests ₹5,000 every month through an SIP.

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How much money can be made with a ₹5,000 SIP?

If you get an average annual return of 12%, a monthly SIP of ₹5,000 can create a fund of approximately ₹46 lakh in 20 years. During this period, your total investment will be ₹12 lakh, while you can receive approximately ₹34 lakh as returns.

If the return is 15% annually, the same SIP can reach approximately ₹66.35 lakh in 20 years. This includes an investment of ₹12 lakh and an estimated profit of approximately ₹54.35 lakh.

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Things to keep in mind before investing in SIP

Before investing in mutual fund SIPs, it is important to understand some key points. The returns in SIPs are not the same every year, as they depend on market fluctuations. However, investing for a long period significantly reduces the risk.

Capital gains tax is also applicable on the profits earned from SIPs. Additionally, returns may be better during market rallies, while there is a possibility of losses during market downturns. Therefore, before investing, be sure to consider your goals, risk tolerance, and investment horizon.