SIP Calculator: A system of millions can be made from a systematic investment plan (SIP) of just ₹ 5,000 every month. Mutual funds continuously invest in a long period of continuous magic of compounding that even the small amount turns into large capital. The question is that if you want to make a fund of 25 lakhs from a monthly SIP of Rs 5,000, then how much time will it take and what kind of returns should it be accepted?
How does SIP grow money?
SIP The magic of is hidden in compounding (compound interest). That is, the more time you give to investment, the faster your money increases. The stock market can get an average of 10% to 15% returns in the long term. We will do calculations here at different returns.
How to make 25 lakhs soon?
If you want this fund to be made quickly, you have two options. First increase the SIP amount, such as start with 7,000 or 10,000 instead of 5,000. Second, increase SIP every year. Many mutual funds have an option of SIP step-up. Suppose 10% SIP is increased every year, then you can make a fund of 25 lakhs even in 12–13 years.
What are the things to take care of?
Disclaimer: Here information provided is being given only for information. It is necessary to mention here that the investment market in the market is subject to risks. Always consult experts before investing money as an investor. There is never advice to anyone to invest money on behalf of Moneycontrol.