SIP Rules: In today’s time, investing in mutual funds has become a need for everyone. In this also people are preferring to invest through SIP (Systematic Investment Plan). This is a very popular system, which does not put much burden on the investor’s pocket. However, this is a bit difficult for investors to understand. How much return can I get? In how much time will the money increase? There is always doubt on such questions. In such a situation, the 7-5-3-1 rule acts as a handy guide. So let us also tell you what is this rule?

What is SIP Rule 7531?
If you also want to invest in SIP then know about this rule. According to this rule of SIP, if you invest in SIP for a long time, your money may grow at different rates at different times. In simple words, this rule states that your investment money can double in approximately 7 years, can increase by 50% in 5 years, can increase by 30% in 3 years, and can give you returns of up to 10% in 1 year. However, this is just an estimate and also depends on the market situation.

understand with example
Suppose a person has done SIP of Rs 5 thousand every month. If he continues this investment for 7 years, his total investment will be Rs 4.2 lakh. According to the 7-5-3-1 rule, this amount can almost double to around Rs 8 lakh. However, it completely depends on the fluctuations of the market. You can get less amount than this or even more.

Similarly, if a person makes the same investment for 5 years, he can get a return of around Rs 6 lakh. Whereas on investment of 3 years this amount can reach around 2.3- 2.5 lakhs. If you invest for one year, this amount will increase marginally. Due to which there will be no benefit to you or any investor.

Let us tell you that every investment also depends on the market condition. It is very important for the investor to remain patient. So that every investor can get long term benefits. Because the real benefit of SIP comes only with time.