Emphasize the benefits of mutual fund SIP as the best long-term investment strategy, offering higher returns over time.
Now, let’s understand how you can create a fund of Rs. 10,000 by investing Rs. 5,000 per month through SIP in a short period. There is a step-up formula for this.
A systematic investment plan (SIP) is profitable for many. Mutual Funds SIP is the best option for those who cannot invest much money at once and need help knowing where to invest.
Starting with an SIP of Rs. 5,000, one can accumulate Rs. 10.19 crores in a lump sum over 36 years, with an average return of 12%. The SIP should be increased by 10% per year to achieve this amount.
Additionally, starting with an SIP of Rs. 5,000 and getting a 15% annual return will accumulate a fund of Rs. 10.50 crores in 35 years. To do this, a 5% increase in SIP per year should be made.
A systematic investment plan gives good returns in the long run, eliminating the need to invest all at once. An investment plan can also be made with a minimum of Rs. 1,000 monthly.
Reiterate the importance of seeking professional advice before investing in the stock market or mutual funds, as market conditions can be unpredictable.