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News Topical, Digital Desk : Everyone is investing heavily in mutual funds these days. The minimum expected return can be 12 to 14 percent. However, this return depends on market fluctuations. Today, let's use SIP calculations to understand how much a person would accumulate if they invested ₹4,000 per month for 10 years.
calculation
- Investment amount – Rs 4000 per month
- Investment return – 12%
- Investment period – 10 years
If an investor invests ₹4,000 per month in a 10-year SIP, they will earn ₹929,000 at a 12% return. Over these 10 years, your principal will grow to ₹480,000, and your return alone will be ₹449,000.
What is SIP?
SIP, also known as Systematic Investment Plan, is a systematic investment plan. As the name suggests, it involves investing money with a fixed investment amount over a specific period of time. SIP offers many benefits that you won't find with any other investment method.
Benefits-
- You can start investing through SIP with as little as Rs 100. There is no maximum limit.
- You can increase the SIP amount whenever you want.
- With this you can stop it whenever you want.
- There is no time limit for FD or RD, you can invest in it for any length of time.
Loss
Under SIP, your money is invested in mutual funds. The returns from these funds depend on market fluctuations.
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