If you want to earn lakhs of rupees by investing less money, then you can invest in SIP of a mutual fund. For this, you just have to invest 1 thousand rupees in SIP, every month.
The risk in SIP of a mutual fund is much less than the stock market, due to which your money is also safe. You usually get a return of up to 12% in Mutual Funds.
Calculation
If you invest ₹1000 every month for 20 years at a return of 12%, then at the end of the period you can have up to ₹10 lakh, because you get compound interest in SIP.
| Year | Total Deposits | Maturity Amount | Interest Earned |
|---|---|---|---|
| 1 | 12,132 | 12,950 | 818 |
| 5 | 60,660 | 83,394 | 22,734 |
| 10 | 1,21,320 | 2,34,895 | 1,13,575 |
| 12 | 1,45,584 | 3,25,797 | 1,80,213 |
| 15 | 1,81,980 | 5,10,126 | 3,28,146 |
| 19 | 2,30,508 | 8,84,954 | 6,54,446 |
| 20 | 2,42,640 | 10,10,139 | 7,67,499 |
- Per Month Investment – ₹1,011
- Total Investment – ₹2,42,640
- Profit – ₹7,67,499
If you want to know how much investment is required to earn how much, then you can use our Goal SIP Calculator
Benefits Of Mutual Fund SIP
Investing in SIP of Mutual Funds gives you the following benefits:
- If the market falls, your fund is under the protection of experienced managers, and you can also stop investing if you want.
- You can select the investment interval as per your convenience, like monthly, quarterly or yearly, you can use our SIP Calculator.
- You can also get income tax exemption up to a certain limit by investing.
Types of SIP
SIP is of different types, some of which are as follows:
- Regular SIP – This is a simple investment, which most people like to do, you can pre-determine the time and amount of investment in it.
- Step-up SIP – In this SIP Investment, you can increase your amount even after investing, like if you feel that you have more money and you can increase the investment by 10% or 20% every year, this will also increase your interest. You can use our Step Up Sip Calculator to calculate this.
- Trigger SIP – In this SIP, you can select a trigger, which if happens, then your investment in SIP will start. This happens based on the market.
SIP of 1000 Rupees Will Make You A Millionaire
For example, if you are 20 years old and you invest Rs 1000 every month for the next 20 years, at the rate of 12%, then you will get Rs 10 lakh at the age of 40.
Remember, mutual funds also depend on the market, there can be fluctuations in the market, there is some risk too, if you want, you can also take advice from an expert.
