SIP Benefits: The Simple Way to Grow Your Wealth Over Time
SIP means Systematic Investment Plan. It is a popular way to invest in mutual funds. Under this, you invest a fixed amount in mutual funds every month.
SIP Benefits
Do you want to invest in mutual funds but have a low budget, No problem, now you can invest in mutual funds even with just ₹ 100 monthly SIP.
With the magic of compound interest, you can create a big fund even with this small amount.
What is SIP
SIP means Systematic Investment Plan. It is a popular way to invest in mutual funds. Under this, you invest a fixed amount in mutual funds every month.
This is an easy and convenient way, through which you keep investing regularly.
Benefits of SIP
Investing in SIP gives you these benefits
The benefit of compounding: Regular investment increases the effect of compounding, which makes your investment grow faster.
Flexibility
You can choose the investment amount and period as per your convenience.
Diversity
By investing in mutual funds, you can diversify your portfolio.
Professional management
Mutual funds manage your investments, saving you time and energy.
How many funds can be created from ₹100 monthly SIP?
If you do a SIP of ₹100 every month and get a return of 12% annually, then in 20 years you can create a fund of around ₹99,915.
If you get a return of 15%, you can create a fund of up to ₹1,51,595.
How many funds can be created in 30 years?
If you do a SIP of ₹100 every month and keep investing for 30 years, you can create a fund of around ₹3,52,991 with a return of 12% annually.
If you get a return of 15%, you can create a fund of up to ₹7,00,982.
How to start
- Go to any mutual fund house or online platform.
- Open your account and select the SIP plan.
- Select the investment amount and the plan.
- Link your bank account.
- The amount will be automatically deducted from your account every month.
Remember
- Investing in mutual funds comes with risk.
- Investing in the long term can yield better returns.
Consider consulting a financial advisor.
Start now
- Start a SIP of ₹100 today and secure your future. It is possible to build a big fund by starting small.