By Admin 
Investment Tips: In today’s time, many investment options are available. But SIP i.e. Systematic Investment Plan has become the first choice of the people. The biggest reason for this is that there is no need to invest a huge amount at once. You can start small and build a larger fund over time.
Employed people, small investors and first-time investors prefer SIP because it is easy, automatic and teaches discipline. Regarding SIP, it comes to people’s mind that can one really become a millionaire by investing Rs 1000 every month? Know its calculation
How to make Rs 10 lakh from SIP of Rs 1000?
Often people think that it is impossible to create a big fund with a small amount. But the real game of SIP is timing and compounding. If you invest Rs 1000 every month and continue it for a long time, your money gradually grows.
In the initial years the progress is less visible. But after some time, returns start coming on returns also. This is the wonder of compounding. This is why it is more important to start early in SIP than to have a large amount. The longer the time. The pace of fund formation will continue to increase.
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Understand the complete mathematics from SIP calculation
If an investor invests Rs 1000 every month in SIP and gets an average return of 12 percent annually, then in about 21 years his fund can reach around Rs 10 lakh. In these 21 years he will invest a total of about Rs 2 lakh 52 thousand. According to estimates, the amount on maturity can be around Rs 11 lakh 39 thousand. In which only about Rs 8 lakh 87 thousand will be returned.
Whereas if we talk about the target of Rs 1 lakh. So it can be completed in about 6 years. That means by investing only about Rs 70 thousand your fund can cross Rs 1 lakh. This shows that the real power is not of money, but of time.
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Should the SIP be stopped or continued if the market falls?
When the stock market falls. That’s when the most nervousness is seen among SIP investors. People start thinking that their money might be lost and decide to stop SIP. But this is the biggest mistake. Falling market means that good funds are available at cheap prices. SIP done at such time gives more units in future. Which gives big benefits as soon as the market stabilizes. The real benefit of SIP lies in the ups and downs. Therefore, decline should be seen as an opportunity and not a fear.
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