SIP Calculation: How much fund will you get if you invest Rs 5000 for 27 years? See the complete calculation..

You can invest in mutual funds through both SIP and lump-sum methods. But most people choose the option of SIP. Through SIP, you can create a huge fund by investing money in installments.

Today we will know that if a person does a SIP of Rs 5000 every month, then how much fund he will get after 27 years. Let's understand this with the help of a calculation.

Calculation
If a person invests Rs 5000 every month and he is doing this for 27 years, then he will get Rs 1,08,11,565 crore on maturity at the rate of 12 percent return. Out of this, the principal will be only Rs 16,20,000, the rest of the money will be received in the form of return.

Let's know what are the benefits of SIP.

Benefits of SIP
Investing in SIP also gives the benefit of compounding. So if you are investing money for a long time, then you get maximum benefit from SIP.

You can invest as much as you want in SIP. There is no limit on investment in it. However, keep in mind that there should be diversification in the portfolio. Which means investing in different asset classes.

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