By Admin 
- Earn up to ₹10 lakh in 10 years with ₹5000 SIP every month.
- SIP is a monthly way of investing in mutual funds.
- Starting investments early gives the benefit of compounding.
Investment Tips: In today’s time, everyone wants to save some part of their earnings for the future. But often people feel that they need a lot of money to start investing. Whereas the truth is that a big fund can be created even with a small amount. If you start SIP (Systematic Investment Plan) of only Rs 5000 every month, then with time this amount can reach Rs 10 lakh. The special thing is that the biggest role in this is compounded i.e. interest on interest. If you are not able to understand this complete calculation then we will help you.
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What is SIP?
SIP is a way of investing in mutual funds, in which a fixed amount is invested every month. This is just like people save every month, but here your money tries to grow by investing in the market. There are ups and downs in the market, but SIP is considered an investment that gives good returns in the long run.
How to make Rs 10 lakh from SIP of Rs 5000?
If a person invests Rs 5000 every month and gets an average annual return of 12%, then in about 9 to 10 years his fund can reach around Rs 10 lakh. That means overall the person will invest around Rs 5.5 lakh to Rs 6 lakh, while the remaining money will be added through returns and compounding.
Understand easy calculations-
Suppose
- Investment every month – Rs 5000
- Estimated Returns – 12% per annum
- Investment period – about 10 years
So after 10 years your total investment will be around Rs 6 lakh, but the fund can increase to around Rs 11-12 lakh. This is considered to be the biggest strength of SIP.
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start earlyWhy not necessary?
Investing is all a game of time. Time is the biggest weapon. If a person starts SIP at the age of 25, he can get big benefits even on small investments. At the same time, if you start late, you may have to invest more money to reach your goal. That’s why experts also say that the sooner you start investing, the better it will be.
Is there risk in SIP?
Yes, SIP is a market related investment, hence the risk is not completely eliminated in this also. If there is a decline in the stock market, returns may reduce for some time. But if investment is maintained for a long time, the risk is considered less. This is why SIP is considered a good way to create long term wealth. SIP of Rs 5000 every month may seem like a small amount, but with the right time and patience, this investment can create a big fund in the future. To achieve Rs 10 lakh, it is important to continue investing regularly and not stop SIP midway due to panic.