SIP Calculation: How much return will you get if you do a SIP of Rs 5,000 for 10 years? See the calculation..

Everyone wants to start a mutual fund SIP. While there are many options for investing in mutual funds, SIP is considered the easiest and simplest investment option. You can start investing with just ₹100 through SIP.

Today, we'll use a SIP calculation to understand how much return someone would receive if they invested ₹5,000 per month for 10 years.

SIP Calculation: How Much Return Will They Earn?
Investment Amount: ₹5,000 per month
Return: 12%
Investment Period: 10 Years
If someone invested ₹5,000 per month for 10 years, they would earn ₹11,62,000 at a 12% return. Over these 10 years, their principal would be ₹6 lakh.

The formula below can help you determine how much of your salary you can invest in SIP.

What is the 50:30:20 formula?

50% - for all expenses
30% - for personal expenses
20% - for savings
If you want to increase your savings, you can use 30% for savings and 20% for personal expenses.

Example:
If a person's salary is ₹30,000, then according to the formula, 50% of the salary, i.e., ₹15,000, will be used for essential expenses. Additionally, 30%, i.e., ₹9,000, can be used for personal expenses and 20%, i.e., ₹6,000, for savings.

How much to invest in mutual funds?
If you wish, you can invest the entire amount of your savings, i.e., ₹6,000, in mutual funds. You can invest ₹3,000 in mutual funds and the remaining ₹3,000 in a secure investment platform.

Disclaimer: This content has been sourced and edited from Dainik Jagran. 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