By investing a fixed amount every day in mutual funds through SIP, a huge amount can be raised after some interval. Compounding will also benefit in the long term.
Savings schemes of banks are no longer as attractive in this era of low interest rate. Investors have to think of other options for higher returns on their savings. If you also want higher returns, mutual funds can prove to be a better option for you. Through Systematic Investment Plan (SIP), you can raise a hefty amount in a few years by investing a fixed amount every month. Keeping this in mind, today we are giving you information about making about 20 lakh rupees every day with a savings of 100 rupees.
How will you get 20 lakh rupees?
If you save 100 rupees every day, then you will be able to save a total of Rs 3,000 in a month. Now you have to invest this amount in a mutual fund for 15 years through SIP. Today, there are many mutual fund schemes, which are giving returns of around 15% per annum. If you too are getting 15% per annum interest on this 15-year investment, then you can raise 20 lakh rupees.
By investing 3,000 rupees every month for 15 years, you will invest a total of 5.40 thousand rupees. On this, you will get a benefit of Rs 14.6 lakh directly. You will get this benefit due to compounding on your investment. In this way you will be able to raise a total of 20 lakh rupees.
Invest via SIP
SIP is considered the best way to invest in mutual fund schemes. SIP reduces risk on investment and also provides better average returns. To start investing in mutual fund SIP does not mean that you can invest in it only for a fixed period. You can close your investment whenever you want. No penalty will have to be paid for this.
What is the best option?
Experts say that if an investor wants to make crores of rupees through his savings, then equity mutual funds can become the best option for him. If a person starts investing from the age of 30, then they will have the option to invest for at least 30 years. Such people should invest in equity mutual funds through SIP. If you get an average of 15% return on an investment for 30 years, then they will also get a tremendous benefit of compounding.
