Systematic investment opportunities enable users to build their future better. Systematic Investment Plans (SIP) is a way by which users can distribute regular fixed funds directly to mutual funds. Moreover, SIPs promotes investment discipline, and it also helps investors practice regular periodic investment through a structured system. SIP investment has gained humongous popularity among all age groups of the investors in current time.
At the time, when investors are actively seeking modern investment opportunities, there are various investment plans on offer, which can you grow your wealth. Systematic investment can help individuals achieve returns in crores. Likewise, this article aims to assist people in selecting the right SIP strategy to meet their financial objectives.
SIP facilitates investors with various features, including fixed amount investment at regular intervals (weekly, monthly, or quarterly), adjustment of investment amount anytime based on individual’s financial situation, amount auto-debited from the bank account systematically, and individuals get the corresponding units of the chosen mutual fund against the amount.
This article will help investors to determine the best Systematic Investment Plan strategy for their needs. Let’s find out which SIP option offers the best returns: Rs 2000 for 40 years, Rs 3000 for 30 years, or Rs 4000 for 25 years.
Which SIP Option Offers Best Returns?
Using an approximate annual return rate of 12%, let’s conduct an analysis of the SIP, which can give superior returns.
Rs 2000 Monthly For 40 Years:
- Monthly Investment: Rs 2000
- Time Period: 40 years or 480 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 9.60 lakh
- Estimated Return: Rs 1,86,26,142
- Total Amount At Maturity: Rs 1,95,86,142
Rs 3000 Monthly:
- Monthly Investment: Rs 3000
- Time Period: 30 years or 360 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 10.80 lakh
- Estimated Return: Rs 81,62,920
- Total Amount At Maturity: Rs 92,42,920
Monthly Investment Of Rs 4000:
- Monthly Investment: Rs 4000
- Time Period: 25 years or 300 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 12 lakh
- Estimated Return: Rs 56,08,826
- Total Amount At Maturity: Rs 68,08,826
(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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