SIP Investment: Today, everyone thinks about investing so that they can secure their future and their family. Everyone thinks that a large amount is needed to invest. But this is a misconception; you can start with a SIP of just 1500 rupees and accumulate a fund of crores. Let us tell you that the formula of Step-up SIP can convert your small investment into a big fund. Let us know how you can accumulate a fund of 59 lakh 3 thousand 253 rupees in 25 years.
What is special about SIP
Talking about the SIP plan, a fixed amount has to be invested in mutual funds every month. Whereas in SIP, you keep increasing your SIP amount every year, like here it will start with 1500 rupees, and a top-up of 10 percent will be applied every year.
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How to apply a 10% top-up every year
If you have started SIP for 25 years, then increase it by 1500 rupees in the first year, and then 10% i.e., 150 rupees next year. This way, the SIP will become Rs 1650. Next year, increase 10% of Rs 1650, and the SIP will become Rs 1815. This way, the amount of 10% will increase on the SIP amount every year.
If you continue this SIP for 25 years and get a return of about 12%, then the total fund will become Rs 59 lakh 3 thousand 253. In 25 years, you will have to invest only Rs 17 lakh 70 thousand 24,7, and at the rate of 12%, you will get Rs 41 lakh 33 thousand 6 from interest.
Who should do Step-up SIP?
For information, if you do a job, then your income increases every year. Students can start it with a small amount. The investor can invest the amount left after household expenses. If you start a SIP of just Rs 1500, then a good fund is created. But by increasing it by 10% every year, the effect of compounding increases a lot.
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Where can you invest
For information, let us tell you that Step-up SIP is considered to be a very good SIP. You can do a Step-up SIP in Equity Mutual Funds, Index Funds, and Hybrid Funds. It is better to take advice from a special person in this regard. He will be able to tell you in this matter, according to your goals that which fund you should choose.