Nowadays, there are old methods like FD and RD, but Mutual Fund SIP has made its mark! This is a scheme in which you can earn lakhs in the long run by starting with just ₹500 every month! The most interesting thing is that both the period and the amount of investment in it are decided by your wish. That is why this method has become everyone’s favorite these days!
Why is SIP so beneficial?
The biggest advantage of investing money in SIP is that it protects you when there is volatility in the market! Moreover, it can give a return of 12% to 14%, which is much more than FD and RD!
Let’s understand with an example: Suppose, you invest ₹500 every month in SIP, and do this for 20 years. So, you invested a total of ₹1,20,000. Now, if you look at the interest rate of 12% per annum, you will get ₹4,99,574! Isn’t it amazing? SIP is also good for those who want to dream big by investing less money.
How much profit will you make from SIP in 20 years?
If you invest ₹500 every month for 20 years, then see how much profit you will get:
Total investment: ₹1,20,000
Interest (12%): ₹3,79,574
On maturity: ₹4,99,574
How much profit will you make from SIP in 10 years?
If you invest ₹500 every month for 10 years, you will still get good returns:
Total investment: ₹60,000
Interest (12%): ₹56,170
On maturity: ₹1,16,170
Some important questions (FAQs)
Question 1: Is it safe to invest money in SIP?
Answer: Yes, SIP is quite safe. It protects you from market fluctuations and gives benefits in the long run.
Question 2: What is the minimum amount to invest in SIP?
Answer: You can start with just ₹500!
Question 3: Can I stop SIP midway?
Answer: Yes, you can stop or start SIP anytime as per your wish.
Question 4: Do SIPs always give high returns?
Answer: Returns depend on the market, but on an average it is 12-14%.
So, what are you waiting for? Start SIP today and fulfill your dreams!