A Systematic Investment Plan (SIP) is perhaps the most easy way to regularly invest a fixed amount in mutual funds. Furthermore, this is indeed promoting disciplined investing. SIP investment is gaining immense popularity among investors of nearly 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 indeed subject to market volatility, but a Systematic Investment Plan offers a flexible and recurring investment option in Mutual Funds.
Features Of The SIP:
- Fixed amount is invested 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. This article will help them to determine the best Systematic Investment Plan strategy for their needs. We will find out a way by which they can make a corpus of over Rs 20 crores by just investing Rs 20,000 monthly and in how much time.
SIP: Corpus Of Rs 20 Crore
Using an approximate annual return rate of 12%, let’s conduct an analysis of the SIP, which can give superior returns.
- Monthly Investment: Rs 20,000
- Time Period: 40 years or 480 months
- Expected Annual Return Rate: 12%
- Total Invested Amount: Rs 96 lakh
- Estimated Return: Rs 22,80,48,405
- Total Amount At Maturity: Rs 23,76,48,405
(This is the data based on SIP calculator)
Based on this calculation, by the time you reach the age of the retirement, you can build a corpus of over Rs 20 crores, by systematically investing Rs 20,000 monthly for 40 years in a Mutual Fund.
