If a common man wants, he can become a millionaire by investing a small amount regularly for a long time, thanks to the power of compounding. A person can create a big corpus even by making small savings. Today we are going to tell you the idea of becoming a millionaire. Your dream can be fulfilled by investing in Mutual Funds through a Systematic Investment Plan i.e. SIP.
Investors get the benefit of compounding in SIP and there is a possibility of higher returns in the long term. If you invest regularly for a long time, the power of compounding can increase your investment to a great extent.
Investment of Rs 100 every month for 20 years
Suppose you choose the option of investing in SIP by saving Rs 100 every month. You can create a fund of Rs 99,914.79 in the next 20 years. Here we are assuming a 12 percent annual return. It is not that 12 percent return on mutual fund SIP is just a matter of saying. There are many such fund schemes in the market, which have given bumper returns in the long term.
Total investment amount - Rs 24 thousand
Total interest - Rs 75,915
Total wealth - Rs 99,914.79
Investment of Rs 100 every month for 30 years
If you save Rs 100 every month and choose the option of investing in SIP for 30 years, then you can create a fund of Rs 3,52,991 at the rate of a 12 percent annual return.
Total investment amount - Rs 36 thousand
Total interest - Rs 3,16,991
Total wealth - Rs 3,52,991
What is SIP? Let us tell you that a Systematic Investment Plan is a popular way of investing in mutual funds. Through this, you can invest in mutual funds every month. SIP is just like a bank RD, but here you get better returns than the bank. A fixed amount is deducted from your bank account every month at a fixed time and invested in SIP.
