Mutual Fund: How long will it take for a monthly SIP of Rs 500 to become Rs 1 crore?
The talk of investing Rs 500 is being done because you do not need to be a millionaire or more wealthy to save and invest this amount every month. Even a middle class family can save Rs 500 per month.
It is a good thing that the awareness of money is spreading rapidly among the people, even children are being given financial knowledge, whether it is through apps online or seminars, although there are many protests for this. Why teach children to save money so early?
See children are the future of the country. And when it comes to financial planning, the sooner it is learned and understood, the better.
Here it is not only about the middle class family, but even the lower class or the poor can save 500 rupees if they want. And investment is necessary along with savings. It is like a sequence in which every link is important, if you will be able to save, then only investment will happen, and when investment will happen then only you will get return, and when you will get return then you will be financially strong and will get freedom from money worries.
Start SIP from Rs 500
By the way, Mutual Fund SIP (Systematic Investment Plan) can be started from 100 rupees also. But to achieve your financial goal quickly, definitely start with at least Rs.500, later it can be increased as much as you want.
Start mutual fund SIP with a good fund, you can take the help of a financial advisor to choose a good fund. Don’t be in a hurry to choose the right fund, do SIP with good research and knowledge.
How much return is available in mutual fund SIP
In mutual funds, you get the option of many funds depending on the need. The returns depend on which category of fund you choose. In mutual funds, you get an annual return of 12%, 20% to 25%, in some funds it is more, up to about 30, 35.
From this you must have understood that this much return is not available even in bank fixed deposits, post office savings schemes, etc.
SIP of Rs 500, when will it be 1 crore
As we said mutual funds can give you good returns, now when you do SIP every month Rs.500. And generate an annual return of 15 percent, then after 37 years you will accumulate a fund of Rs 1,00,25,320 crore.
If you deposit the same for 40 years, then after depositing Rs. 2,40,000, you will deposit total Rs. 1,57,01,878 after getting interest of Rs. 1,54,61,878 on it.
If you are old, and think what is the use of that deposit which I will not be able to use, then you can at least do it for your children and granddaughters.
If you want faster and higher returns, keep increasing your investment amount over time.
If you do SIP of Rs 500 for 20 years then
Now if you invest Rs 500 per month SIP for 20 years and generate only 15% annual return, then on a deposit of Rs 1 lakh twenty thousand, you will get interest of Rs 6,37,977 and your total amount will be Rs 7,57,977. Will go
Now you must have understood that there is a huge difference between money and land in the interval of time.
That’s why invest wisely, because in the ups and downs of the market, the returns can be less and more in ups and downs, so choose a good fund.. Thank you