Systematic Investment Plans (SIP) are perhaps the easiest way to regularize your investment in a fixed amount in mutual funds. Moreover, this also promotes disciplined investing habits among the individuals. SIP investment is gaining immense popularity among investors of almost every age bracket with each passing day. SIPs are gaining more and more popularity as a growing number of young investors choose this investment option.
Furthermore, SIPs are subject to market volatility, but a Systematic Investment Plan offers a flexible and recurring investment option in Mutual Funds.
Features Of The SIP:
- Fixed amount is invested at regular intervals (weekly, monthly, or quarterly).
- People can adjust their investment amount anytime based on your financial situation.
- Individual’s investment amount is auto-debited from the bank account systematically.
- People get the corresponding units of the chosen mutual fund against the amount.
Nowadays, all kind of investors are looking for the fresh investment opportunities. People are worried about their financial needs by the time they reach the age of retirement. This article will help them to determine the best Systematic Investment Plan strategy for their needs. We will find out in how much time, an individual can make a corpus of Rs 10,00,00,000 by just investing Rs 11,000, Rs 21,000, Or Rs 31,000 monthly.
SIP: Corpus Of Rs 10,00,00,000
Using an approximate annual return rate of 12%, let’s conduct an analysis of the SIP, which can give superior returns.
Rs 11,000 Monthly:
- Monthly Investment: Rs 10,000
- Time Period: 40 years or 480 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 52.80 lakhs
- Estimated Return: Rs 10,24,43,781
- Total Amount At Maturity: Rs 10,77,23,781
Investment Of Rs 21,000 Monthly:
- Monthly Investment: Rs 21,000
- Time Period: 34 years or 408 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 85.68 lakhs
- Estimated Return: Rs 9,45,20,712
- Total Amount At Maturity: Rs 10,30,88,712
Investment Of Rs 31,000 Monthly:
- Monthly Investment: Rs 31,000
- Time Period: 31 years or 372 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 1,15,32,000
- Estimated Return: Rs 9,58,35,151
- Total Amount At Maturity: Rs 10,73,67,151
(This is the data based on SIP calculator)
(Disclaimer: This article is for informational purposes only and not 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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