SIP is a long term investment process and has given excellent returns to its investors in the long run. In such a situation, through disciplined investment, annual increase in investment and compounding, you can fulfill your dream of becoming a millionaire.
Everyone saves a part of their earnings for after retirement, so that at that stage of age they do not have to face any financial problems nor have to depend on anyone else for their survival. These savings of yours can also make you a millionaire, but for this it is necessary to invest at the right place and due to its excellent returns, Systematic Investment Plan i.e. SIP is becoming very popular in this matter. By investing Rs 30,000 every month in this, you can collect a fund of Rs 5 crore.
Investment for 19 years and fund of Rs 5 crore
Systematic Investment Plan (SIP) is a long term investment process and the most important thing in it is that along with strong returns on investment, maintaining it for a long period also gives the benefit of compounding and a huge fund is accumulated. Is. If you deposit Rs 30,000 every month in SIP and continue this investment for 19 years, then with compounding you can join the list of crorepatis by depositing a fund of Rs 5 crore.
Before investing in the stock market or mutual funds, it is important to understand that these markets are subject to risks and there may be fluctuations in returns i.e. your actual return may be more or less. Could. However, if we look at the history of SIP, it has given returns of 10-15 percent or more to investors. Not only this, the returns of many SIPs have been 18-20 percent in the long term.
Increase investment amount by 10% annually
Now let’s talk about the formula that can make you the owner of Rs 5 crore, according to the report of Fund’s India Research published on Business Today, if you save Rs 30,000 per month and invest it in SIP and If you increase it by 10 percent every year, then even if you get 12 percent rate of return, you can collect Rs 5 crore in 19 years. The special thing is that you will get the first Rs 50 lakh of this big fund during the investment of 7 years.
Will deposit Rs 1 crore in just 10 years
Your funds will continue to be added in the same ratio, although the time will keep decreasing. If you continue SIP investment with this formula, it will take only 3 years for the second Rs 50 lakh to be deposited in your fund and only 2 years for the third Rs 50 lakh. This means that with a monthly investment of Rs 30,000 and a return of 12 per cent with an annual increase of 10 per cent, you will accumulate Rs 1 crore in 10 years. By the 19th year, your deposit will be Rs 5 crore with compounding.
3 things helpful in reaching the goal
Mainly three things are helpful in achieving the target of raising funds of Rs 5 crore in 19 years in SIP. Disciplined and regular investment, growing contribution and the power of compounding. That is, sticking to SIP in disciplined investment to achieve your goal, the power of compounding contributes to increasing the amount of your investment and returns manifold over time. By increasing your invested amount little by little, you can achieve this target soon.
For example, if you invest Rs 30,000 per month and do not increase your contribution by 10 per cent, then according to the SIP Calculator, it will take you 24 years to accumulate a corpus of Rs 5 crore with a return of 12 per cent.
(Note- Before making any kind of investment, definitely take advice from your market experts.)
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