SIP Calculation: When will a monthly SIP of Rs 2000 create a fund of Rs 5 lakh, see the complete calculation..

Investors are showing interest in mutual funds these days, the reason for this is that they give attractive returns. SIP is usually chosen for investing in mutual funds. Because under this, you can create a big fund by investing money in small installments.

Today, through this article, we will know that if a monthly SIP of Rs 2000 is done, then by when a fund of Rs 5 lakh will be ready. Let's see the calculation.

Calculation
Investment amount - Rs 2000 per month
Return - 12 percent
If a person invests Rs 2000 every month in a mutual fund, then he will get Rs 5 lakh on maturity after 11 years at the rate of 12 percent return. In these 11 years, the principal of the person will be Rs 2,64,000. However, this return depends on the fluctuations of the market.

Mutual Fund
Under mutual funds, investments are made in different asset classes (bonds, debt, and equity). Therefore, it cannot reflect the ownership of any one company.

You can further diversify your portfolio by investing in different mutual funds.

Because of more diversification, the risk in it is less than that of shares.

In this, the mutual fund manager manages the fund. Therefore, even if the knowledge of the market is limited, there is not much loss.

Investors mostly invest money in mutual funds for the long term. Now, let's understand what is better for you?

Share Market vs Mutual Fund, which is better?

If investors want, they can invest in both the stock market and mutual funds. If you do not want much risk, and also do not know much about the stock market, then investing in mutual funds is right. If you have sufficient knowledge of the market, then the stock market will be right.

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