Investment: By saving Rs. 200 every day, you can build a substantial fund of Rs. 25 lakh. Here's the magic formula..
Whether your income is ₹50,000 per month or even less than ₹30,000, you only need to save ₹200 a day. By saving just this much daily, you can build a corpus of over ₹25 lakh. Let's understand how this works.
The Power of Small Investments
Nowadays, mutual fund companies are offering the 'Daily SIP' facility. With this, you can invest a small amount like ₹100 or ₹200 daily. This is excellent for those who don't have a large lump sum amount, such as salaried employees, freelancers, or small business owners.
The Journey to ₹25 Lakh: Understanding the Calculation
Let's say you start a daily SIP of ₹200. This means you are investing approximately ₹6,000 per month. If we assume an estimated annual return of 12%, the calculation would be as follows:
Daily Investment: ₹200 (₹6,000 per month)
Tenure: 14 years
Your Total Investment: ₹10.08 lakh
Estimated Returns: ₹16.1 lakh
Total Amount at Maturity: ₹26.18 lakh
This means that with just 14 years of discipline, you can cross the ₹25 lakh mark.
Why is Daily SIP Beneficial?
Power of Compounding: The longer your money stays in the market, the more interest it earns, which in turn earns more interest. In the long run, this magic transforms small investments into large sums.
Rupee Cost Averaging: When the market falls, you get more units, and when it rises, you get fewer. Investing daily reduces the risk associated with market fluctuations.
Financial Discipline: It helps you curb unnecessary spending and instills the habit of saving for the future.
While building a ₹25 lakh fund is a significant achievement, remember that inflation and taxes can affect your returns in the future. As your income increases, you can also increase your SIP amount so that you can reach your goal even faster.
Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
