Systematic Investment Plans (SIP) are perhaps the easiest way to regularize your investment in a fixed amount in mutual funds. Moreover, this also promotes disciplined investing habits among the individuals.
SIP investment is gaining immense popularity among investors of almost every age bracket with each passing day. SIPs are gaining more and more popularity as a growing number of young investors choose this investment option.
Furthermore, SIPs are subject to market volatility, but a Systematic Investment Plan offers a flexible and recurring investment option in Mutual Funds.
Features Of The SIP:
- Individuals invest a fixed amount at regular intervals (weekly, monthly, or quarterly).
- People can adjust their investment amount anytime based on your financial situation.
- Individual’s investment amount is auto-debited from the bank account systematically.
- People get the corresponding units of the chosen mutual fund against the amount.
Nowadays, all kind of investors are looking for the fresh investment opportunities. People are worried about their financial needs by the time they reach the age of retirement.
This article will help investors determine the best Systematic Investment Plan strategy for their needs. In this article we will compare the returns, Rs 10,000 monthly for 10 years, Rs 20,000 for 7 years, or Rs 30,000 for 5 years – which investment gives the best results?
SIP: Best Returns On Investment
Using an approximate annual return rate of 12%, let’s conduct an analysis of the SIP, which can give superior returns.
Rs 10,000 Monthly For 10 Years:
- Monthly Investment: Rs 10,000
- Time Period: 10 years or 120 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 12 lakh
- Estimated Return: Rs 10,40,359
- Total Amount At Maturity: Rs 22,40,359
Rs 20,000 Monthly For 7 Years:
- Monthly Investment: Rs 20,000
- Time Period: 7 years or 84 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 16.80 lakh
- Estimated Return: Rs 8,96,027
- Total Amount At Maturity: Rs 25,76,027
₹30,000 Monthly For 5 Years:
- Monthly Investment: Rs 30,000
- Time Period: 5 years or 60 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 18 lakh
- Estimated Return: Rs 6,33,108
- Total Amount At Maturity: Rs 24,33,108
