Mutual Fund SIP Calculator: How starting an investment with small amount of SIP can give you highest returns after several years.
A Systematic Investment Plan (SIP) can be a powerful tool to grow your wealth over time, even with modest monthly contributions. By consistently investing Rs 5,000 per month, you can accumulate a retirement corpus of over Rs 7.4 crore. Curious how this works?
Benefits of Investing in SIP Mutual Funds
- Power of Compounding: Over time, your investment grows not only on the principal amount but also on the accumulated interest, making SIP a powerful tool for long-term wealth creation.
- Disciplined Investment: SIPs encourage consistent, regular investments, helping you stay committed to your financial goals without the pressure of timing the market.
- Lower Risk: Compared to directly investing in stocks, SIPs diversify your investment across various assets, reducing overall risk and offering more stability.
- Higher Returns: With an average return of around 12-15% per year, SIPs often outperform traditional savings schemes, offering superior wealth creation potential over the long term.
Investing in SIP mutual funds is a smart strategy for those seeking long-term financial growth with manageable risk.
The power of compounding plays a key role, allowing your investment to grow exponentially. A SIP offers several advantages over other investment options and can help secure your financial future, even with a relatively small starting amount.
Rs 7 Crore Corpus With Rs.5000 Monthly SIP
Assume that if you make a monthly investment of Rs 5,000 in an SIP for 35 years with an annualised return of 15 per cent, your total investment would be Rs 21,00,000. Over this period, with the power of compounding, your estimated long-term capital gain would be Rs 7,22,03,225, bringing the total value of your investment to Rs 7,43,03,225.
- Invested Amount: Rs 21,00,000
- Estimated Capital Gain: Rs 7,22,03,225
- Total Value: Rs 7,43,03,225
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)