SIP Calculator: Long term investment in SIP can help you build a big fund. You can make Rs 20 lakh from SIP of Rs 25 thousand. Know the complete calculation
You can invest in SIP in case of financial crunch in future or to meet your expenses. SIP means Systematic Investment Plan. If you do not want to invest directly in the stock market then SIP is the perfect option for you. In SIP a fixed amount has to be deposited at every regular interval. Know here how a fund of Rs 20 lakh can be deposited through SIP with a monthly deposit of Rs 25 thousand.
How to make Rs 20 lakh, this is the calculation
According to the calculation, you will have to invest Rs 25,000 every month. This means you will invest Rs 3 lakh in 1 year. You will have to make this monthly investment for 5 years. That means you will invest a total of Rs 15 lakh in SIP for 5 years. Now suppose you get 12% annual return on investment. Keep in mind, you also get the benefit of compounding on interest. That means you can earn interest on interest also.
You will get a total interest of Rs 5,62,159 on SIP investment. At the time of maturity, you will get the investment amount and interest amount together, which will be ₹ 20,62,159.
Keep in mind, to earn profits in SIP, you are advised to invest for a long time. Stock market fluctuations can affect your SIP returns. Before following this plan, please consult your financial advisor.
