SIP Calculation: Mutual fund SIPs (Systematic Investment Plans) provide an easy and efficient means to accumulate significant wealth over time for anyone interested in long-term investing, regardless of their employment status or level of education. You can begin investing with as low as Rs 500 per month using SIPs. This sum can be invested and saved consistently to build up a sizeable corpus. Assuming an average yearly return of 12%, let’s see how saving Rs 100 per day through a monthly SIP might increase over 10, 20, 30, and 40 years.
SIP Investment | Mutual fund
Investment Growth with Rs 100 Daily Savings
Let’s say a person creates a savings account (SIP) at the beginning of each month with the amount they save each day, or around Rs 3000. Now, let’s use the SIP calculator to determine the amount of corpus that person can produce over the course of the following 10, 20, 30, and 40 years. Over a lengthy period of time, the average SIP return is 12% annually. Since the index’s long-term return is projected to be roughly 12%, this predicted return is used.
SIP Calculation: 10-year fund by saving Rs 100
Assume for ten years that you invest Rs 3000 per month (or about Rs 100 per day) in a SIP. Based on an average annualized return of 12 percent, the SIP calculator estimates that the investor can build an estimated corpus of Rs 6,97,017 in ten years. In this case, a long-term capital gain of Rs 3,37,017 is projected, with an investment of Rs 3,60,000.
SIP Calculation: 20-year fund by saving Rs 100
Consider a person who invests in SIP for 20 years and saves Rs 100 each day, or around Rs 3000 per month. Based on an average annualized return of 12 percent, the SIP calculator estimates that the user can build an estimated fund of Rs 29,97,444 in 20 years. The projected capital gain on this will be Rs 22,77,444, with an investment of Rs 7,20,000.
SIP Calculation: 30-year fund by saving Rs 100
Assume someone invests in SIP for 30 years at a rate of return of 100 rupees per day, or around 3000 rupees per month. The SIP calculator indicates that he or she can build an anticipated corpus of Rs 1,05,89,741 in 30 years, assuming an average annual return of 12%. Rs 10,80,000 will be invested in this, with an anticipated long-term capital gain of Rs 95,09,741.
SIP Calculation: 40-year fund by saving Rs 100
Assume someone initiates a 40-year SIP and saves Rs 100 each day, or around Rs 3000 per month. The SIP calculator indicates that he or she can build an anticipated fund of Rs 3,56,47,261 in 40 years, assuming an average yearly return of 12%. The projected capital gain on this will be Rs 3,42,07,261, with an investment of Rs 14,40,000.
Start Early for Greater Benefits
Commencing a SIP at the earliest opportunity can greatly expand your corpus. If you start investing at age 20 and put aside Rs 3,000 a month, for example, you may have amassed almost Rs 3.5 crore (roughly) by the time you’re 60.
SIP: Understanding the Risks
SIPs are not risk-free, even if they provide a disciplined investing strategy with advantages like compounding and rupee cost averaging. Returns on mutual funds can be impacted by market changes, and historical performance does not guarantee future outcomes. Before making an investment, it’s critical to assess your income, risk tolerance, and financial objectives.
Notice: There is a risk associated with the market; the returns discussed are based on SIP estimations. Returns may differ in reality. Before making any investing decisions, seek the advice of a financial professional.