You can deposit a fixed amount in mutual funds every month through SIP. If you start SIP of Rs 5000 for 15, 20, 25 and 30 years, then how much return will you get? Know the calculation here-
Nowadays the trend of investing in mutual funds through SIP has increased a lot. Despite being linked to the market, mutual funds are considered one of the best investment options. By investing for a long time, you can accumulate big money through this. Most experts consider the average return of mutual funds to be 12 percent, which is better than any scheme. You can deposit a fixed amount in mutual funds every month through SIP. If you start SIP of Rs 5000 for 15, 20, 25 and 30 years, then how much return will you get? Know here-
Know the returns in 15, 20, 25 and 30 years
- If you deposit SIP of Rs 5000 per month continuously for 15 years, then in 15 years you will invest a total of Rs 9,00,000. At the rate of 12 percent, you will get a total of Rs 16,22,880 as interest on this investment and in 15 years you will get a total of Rs 25,22,880.
- If you continue investing in mutual funds through SIP for 20 years, you will invest a total of Rs 12 lakh, but at the rate of 12 percent, you will get more than double the return on it. You will get a total of Rs 37,95,740 as interest and after 20 years you will get a total of Rs 49,95,740.
- If you continue this investment for 25 years, your total investment will be Rs 15,00,000, but you
You can get interest of Rs 79,88,175 only at 12 percent return. After 25 years, including the invested amount and interest, you will get a total of Rs 94,88,175. - At the same time, if you continue investing continuously for 30 years, you can add more than Rs. 2.25 crores. Your total investment in 30 years will be Rs 18,00,000, but you will earn Rs 1,58,49,569 only from 12 percent interest. In this way, in 30 years you will get a total of Rs 1,76,49,569.
Why invest in SIP? Know the benefits
1- The first advantage of SIP is that there is flexibility in investing through SIP regarding investment period and amount. That is, you can choose the investment period option of monthly, quarterly or half yearly as per your convenience. Apart from this, whenever you need, you can stop it and withdraw money from your SIP.
2- When you invest from time to time, you get the benefit of rupee cost averaging. That is, if the market is in decline and you have invested money, then you will be allotted more units and if the market is rising, the number of units allotted will be less. Your expenses remain average even in case of market fluctuations. That means you do not incur losses even if the market falls. In such a situation, when the market rises, you get a chance to get better returns on your average investment.
3- The benefit of compounding in SIP is tremendous. Therefore, SIP should be done for a long time, the longer it is, the greater will be the benefit of compounding. Under compounding, you do not get returns only on the amount you have invested. Rather, you also get returns on the earlier returns.
4- Through SIP, you learn to save for a fixed period of time, that is, whatever money you have to invest monthly, quarterly or half yearly, you spend the rest only after saving that amount. This way you get into the habit of disciplined investing.
