A Systematic Investment Plan (SIP) is an easy way to systematically invest a fixed amount in mutual funds, promoting disciplined investing. SIP is gaining popularity among young and old investors with each passing day. SIPs are gaining massive popularity as a growing number of investors choose this investment option.
Moreover, a Systematic Investment Plan gives a flexible and recurring investment option in Mutual Funds. With a SIP, you can:
- Invest a fixed amount at regular intervals (weekly, monthly, or quarterly).
- Adjust investment amount anytime based on your financial situation.
- Your investment amount will be auto-debit from your bank account.
- Individuals get corresponding units of your chosen mutual fund.
In 2025, young and old investors are looking for the fresh investment opportunities. This write-up will help young investors determine the best Systematic Investment Plan strategy for their needs. We will find out a way by which youngsters can make a corpus of over Rs 1 crore by just investing Rs 1,000 monthly for 40 years and become a crorepati.
SIP For 40 Years
Keeping a projected annual return rate of 12%, let’s conduct an analysis of the SIP, which can give superior returns.
Rs 1,000/Month For 40 Years
- Monthly Investment: Rs 1,000
- Time Period: 40 years or 480 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 4.80 lakh
- Estimated Return: Rs 1,14,02,420
- Total Amount At Maturity: Rs 1,18,82,420
(This data is based on SIP calculator)
How Does This Calculator Works?
The calculation for a SIP plan is based on the following formula:
M = P × ({[1 + i]^n – 1} / i) × (1 + i).
- M = Amount you receive upon maturity.
- P = Amount you invest at regular intervals.
- N = Number of payments you have made.
- I = Periodic rate of interest.
(Disclaimer: This article is for informational purposes only and should not be construed as an investment advice. Prior to making an investment or taking a loan, conduct thorough research and consult with your financial advisor.)
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