SIP Calculation: You will become a millionaire through SIP in 10 years, know how much you will have to invest per month..
SIP Calculation: People are very interested in Mutual Fund investment these days, because they give better returns than traditional options like FD. SIP (Systematic Investment Plan) is considered to be the best for wealth creation in the long run.
Its specialty is that you get the benefit of compounding in it, and you can make small, regular investments. This method is best for those who want to increase their wealth gradually.
'Step-up SIP' can give higher returns.
Systematic Investment Plan (SIP) is an effective way to build a corpus in the long run by investing a fixed amount every month. To make it even better, investors are opting for 'Step-up SIP'. In this, the amount of monthly SIP is increased a little every year with your increasing salary. This method can give very high returns in the future, so that your financial goals can be achieved faster.
Mutual funds are giving an average return of 12% to 14% every year.
Although investments related to the share market are risky, if they are done for a long time, then they can be beneficial. Some good mutual funds give an average return of 12% to 14% every year. For this reason, achieving a big goal like ₹ 1 crore in a short time is no longer impossible.
How to become a millionaire in 10 years through SIP?
Suppose you have to raise an amount of ₹ 1 crore in 10 years. If you follow a simple SIP scheme and invest in a mutual fund that gives an estimated return of 12% per annum, the growth of your investment will be something like this:
Investment period: 10 years
Monthly SIP: ₹43,500
Estimated return: 12% per annum
Total investment: ₹52,20,000
Estimated return: ₹48,86,749
Total corpus: ₹1,01,06,749
If you do a SIP of ₹43,500 every month for an investment period of 10 years and get an estimated return of 12% per annum, your total investment will be ₹52,20,000, which will give an estimated return of ₹48,86,749, which will give you a total corpus after 10 years It will become ₹1,01,06,749.
'Step-up SIP' option is more beneficial.
However, doing SIP of ₹43,500 every month is not easy for everyone. In such a situation, the 'Step-up SIP' option can prove to be more helpful.
Step-up SIP scheme:
Initial monthly investment: ₹30,000
Annual step-up - increase investment amount by 10% every year
Total investment: ₹57,37,472
Estimated return: ₹43,85,505
Total amount: ₹1,01,22,978
In Step-up SIP, if you start with a monthly SIP of ₹30,000 and increase it by 10% every year, then your total investment in 10 years will be ₹57,37,472. On this, you can get an estimated return of ₹43,85,505, which will make your total amount ₹1,01,22,978 after 10 years.
In this method, the investment amount is less in the beginning, but gradually the total investment increases. With this, you can increase your investment according to your income.
Keep these things in mind -
Inflation is not included in these figures. Therefore, you should keep inflation and tax (Capital Gains Tax) in mind while making your financial target.
Disclaimer: This content has been sourced and edited from Hr Breaking. 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.
