Best SIP Investment Plan: Just have to save Rs 100 daily. Invest Rs 3000 per month in equity mutual funds and leave it for 30 years. With this your retirement planning will also be done. After 30 years you will have Rs 4.17 crore.
SIP Investment: Well, the sooner investment is started, the better. But, this is not a rule. There is a delay in investment but if the strategy is right then money will still be made. SIP is also best for people above 30 years of age. No need for big investment. Just have to save Rs 100 daily. Invest Rs 3000 per month in equity mutual funds and leave it for 30 years. With this your retirement planning will also be done. After 30 years you will have Rs 4.17 crore. This is nothing. There will be such a huge rain of returns that only Rs 3.58 crore will be earned only from interest. Let us understand the complete calculation.
Long term strategy works
If you want to make money then long term strategy works best. Remove necessary expenses from your income and then save only Rs 100 daily. This savings has to be invested every month. Systematic investment plan will give right direction to your money and the returns will keep increasing your money.
Equity mutual fund is a good option
According to investment advisor, if you want a big fund then equity mutual funds can be a good option. If an investor makes his first investment of Rs 3000 at the age of 30 and makes regular investments for 30 years, a big fund will be created. It is beneficial to invest in Systematic Investment Plan (SIP) of equity mutual funds.
There is a big benefit of compounding
If you believe the advisor, you have to invest in mutual funds for 30 years. If you get an estimated return of 15% then the path to becoming a millionaire becomes easy. The biggest benefit is compounding. Meaning, you will get the benefit of compound interest along with 15% in 30 years. But, what is more important is the most accurate formula, which will add value to SIP. This formula is of Step Up SIP. All you have to do is maintain a step-up rate of 10% every year.
10% step-up will create a corpus of Rs 4.50 crore
You are 30 years old. Saved Rs 100 daily and invested in SIP. Long term strategy aimed for 30 years. Keep doing 10% step-up every year. If you started with Rs 3000, you will have to increase it by Rs 300 next year. After 30 years you will have a maturity amount of Rs 4,50,66,809. According to SIP calculator, your total investment in 30 years will be Rs 59,21,785. But, here the profit from returns alone will be Rs 3 crore 91 lakh 45 thousand 025. This is the magic of returns in SIP. In this way, with the help of the most accurate formula step-up, you will have a huge fund of Rs 4 crore 50 lakh.
Disclaimer: Investing in mutual funds is subject to market risks. Before making any kind of investment, definitely take advice from your financial advisor. The calculation is given here as general information. How much money you make depends on your investment and period.
