Give booster dose to SIP through top-up, then see how your money doubles, triples and quadruples with speed.

Mutual Fund SIP Top-Up: Normally when you start SIP, you invest a fixed amount in it every month. If you give a booster dose of top-up to this SIP, your money can double, triple and quadruple very quickly. Know its method-

Mutual Fund SIP Top-Up: Despite being market linked, nowadays people are liking Mutual Fund SIP a lot. In recent times, people's investment in SIP has increased rapidly. The reason for this is that the risk in SIP is less as compared to investing directly in stocks, and the returns are so good, which is not available even in any government scheme. According to experts, an average return of 12 percent is available in SIP.

In such a situation, when you invest in the long term, your money grows very fast with compounding interest. The longer you do SIP, the better wealth creation you can do faster. But if you give a booster dose of top-up to this SIP, your money can double, triple and quadruple very quickly. Know here what you have to do.

Understand what is Top-Up SIP

Normally, when you start SIP, you invest a fixed amount every month. Suppose you start a SIP of Rs 2,000 for 10 years, then you run it for 5, 10, 20, any number of years, you will deposit only Rs 2,000 every month, but Top-Up SIP is a facility in which you can deposit your regular You can add some more amount to SIP. It can be understood that you have chosen the option of monthly SIP of Rs 2,000 at the beginning of your job. As your salary is increasing every year, you can top up some amount in SIP every year in that proportion.

Understand with example

Suppose you start a monthly SIP of Rs 2,000 and increase the amount by 10 percent every year. For example, you started a SIP of Rs 2,000 for one year and after the end of the year, you increased 10% of Rs 2,000 i.e. Rs 200 and made this SIP Rs 2,200. Next year, you increased 10% of Rs 2,220 i.e. Rs 222, and made this SIP Rs 2,422. In this way, every year you will have to increase the monthly amount of this SIP by 10 percent.

This way money will double, triple, and quadruple

Suppose you run this SIP for 10 years with a top-up of 10%, then your total investment will be ₹ 3,82,498, if calculated with an average return of 12 percent, then you will get an interest of ₹ 2,92,367. You will get it and after 10 years you will get a total of Rs 6,74,865. But if you continue this SIP with top-up for 15 years, the total investment will be ₹ 7,62,540, the interest on it will be ₹ 9,74,230 and in 15 years you will get a total of ₹ 17,36,770.

If we continue investing in this pattern for 20 years, then ₹ 13,74,600 will be invested. Interest of ₹ 26,03,143 will be available at the rate of 12 percent and after 20 years, ₹ 39,77,743 will be available. Whereas if the investment is continued continuously for 25 years, the total investment will be ₹ 23,60,329, interest of ₹ 61,90,763 will be received and after 25 years, the total amount will be ₹ 85,51,092.

(Disclaimer: Investments in mutual funds are subject to market risks. Do your own research or consult your advisor before investing.)