Investment: Every month you will earn Rs 17,500 from home, this method of investment will provide you fun for 30 years..

Often, we think that there is no big benefit in investing a small amount. But do you know how big an amount it can turn into if you invest a lump sum of 1 lakh in a mutual fund?

And the biggest thing is that this amount can also give you a regular income of about 17,500 rupees every month for 30 years. Let's understand its complete calculation,

How is a monthly income of ₹ 17,500 possible for 30 years?

Suppose you invested 1 lakh rupees in a lump sum in an equity mutual fund where you get a 12% annual return. After 30 years, your investment will reach about 30 lakhs. Even after tax, you will have about ₹ 26.5 lakh. Now you transfer this amount to a hybrid or debt fund through SWP, where you get a safe return of about 7%.

With this, you can get a regular income of Rs 17,500 every month, and this income will continue for 30 years. Overall, you would have withdrawn about ₹ 63 lakh from an investment of Rs 1 lakh, and in the end, you will also have some savings left.

When and how to invest?

First of all, it is important to know how important it is to choose the right time and right place for investment. If you start investing in mutual funds from today, especially in equity mutual funds, then even your small amount can become a big amount in the long run. The secret of this is compounding, i.e., the formula of earning interest on interest. The more time you give to the investment, the more it will grow.

SIP and lump sum investment: What is the difference?

There are two ways to invest in mutual funds: SIP (Systematic Investment Plan) and lump sum investment. In SIP, you invest a little money every month, which gradually creates your big fund. Whereas, in a lump sum investment you invest a large amount at one time.

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