SIP Calculation: How much will a monthly SIP of Rs 4,000 generate after 15 years? See the calculation..

Most people choose SIPs for mutual fund investment. Through SIPs, you can build a large fund with small installments. Expenses are not affected by the investment. Today, we will use SIP calculations to understand how much fund will be created by investing Rs. 4,000 per month for 15 years.

Calculation
Investment amount: Rs. 4,000 per month
Investment period: 15 years
If a person makes a SIP of Rs. 4,000 per month for 15 years, they will receive Rs. 25,23,000 at a 12% return. The principal amount will grow to Rs. 9 lakh over these 15 years.

What is the 7-5-3-1 rule of SIP?

7- Keep your investment horizon at 7 years
5- Invest in five different asset classes (such as equities, bonds, ETFs, gold, etc.)
3- Don't be afraid of three types of risk
1- Increase your SIP amount every year

Keep your investment horizon at 7 years.

It is believed that you will only benefit from compounding through SIPs if you wait for 7 years. This means you should keep your investment horizon at 7 years.

Invest in five different asset classes.
The "5" in this rule indicates that you should invest in five different asset classes: equities, bonds, real estate, gold, etc. Simply put, you should diversify your portfolio as much as possible to maintain balance.

Don't be afraid of three types of risk.
Investors often face three different types of risk when starting a mutual fund investment.

7 to 10 percent returns
At such times, investors often think they could have gotten better returns from fixed deposits. However, we need to understand that mutual fund returns depend on market fluctuations. Therefore, both your profits and losses can fluctuate.

0-7 percent returns
In this situation, people often stop investing and switch to other funds. However, we need to understand the type of fund we have invested in and how long it may take to generate returns. Some funds may take longer to generate profits.

Negative returns
Anyone can be disappointed by negative returns. We must keep in mind that market conditions change. Therefore, it is wise to wait a little longer.

Increase your SIP amount every year.
It is also said that investors should increase their SIP amount every year. This increases the chances of earning more profits. The higher the amount, the greater the profits.

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.