Yeah If you want to save money for your child’s education, marriage or building a house after 20 years and are looking for a better investment option, then SIP mutual fund can be a great option for you. According to AMFI data, SIP mutual fund has been providing huge benefits to investors for a long time. Although there is a lot of risk in the stock market, common people of the country are now investing in SIPs on a large scale. Here we will know how much SIP will have to be done to create a fund of Rs 1 crore in 20 years.
SIP returns depend on many factors
SIP returns depend on 4 main things. The first is how many years you have to invest, the second is how much money you have set a goal to deposit, the third is how much money you will invest and the fourth is the percentage return you will earn. It may be in the hands of investors to implement the first three things, but the fourth, i.e. profitability, is not in anyone’s hands. The returns received in SIP completely depend on the movement of the stock market. But the longer you do SIP, the more benefits you will get from compounding.
A fund of Rs 1 crore can be created with a SIP of Rs 7,000.
If an estimated return of 12 per cent is earned every year, then an SIP of Rs 11,000 can create a corpus of Rs 1.09 crore in 20 years. On the other hand, if an estimated return of 15 per cent is earned every year, then an SIP of Rs 7,000 can create a corpus of Rs 1.06 crore in 20 years. While investing in SIP, keep in mind that SIP never gives uniform returns and there are always continuous fluctuations. Therefore, to achieve your goal, invest as much money as possible in SIP for as long as possible as per your ability.
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