Today, everyone is including a mutual fund SIP in their portfolio. With this, you can create a big fund with small installments. Although there are many other ways to invest in mutual funds. But today we will specifically talk about SIP.

Let us know how much fund will be created after 20 years from the SIP of Rs 5000 and Rs 10,000?

Calculation
Investment amount - Rs 5000

Return - 12 percent

If a person does a SIP of Rs 5000, then according to a 12 percent return, he will get Rs 45,99,287 after 20 years. At the same time, Rs 12 lakh would have been deposited by the investor in these 20 years. In these 20 years, investors will get Rs 33,99,287 as a return.

Investment amount- Rs 10,000

Return- 12 percent

If someone does a SIP of Rs 10,000 every month for 20 years, then, according to a 12 percent return, he will get Rs 91,98,574 after 20 years. This amount is almost equal to Rs 1 crore. In these 20 years, investors would have invested Rs 24 lakh. At the same time, in these 20 years, investors will get Rs 67,98,574 as a return.

SIP investment gives these benefits
Benefit of compounding
Investing in SIP also gives the benefit of compounding. Therefore, only if you are investing money for a long time will you get the benefit in SIP. The longer you invest, the more you will get the benefit of compounding.

No limit on investment
You can invest as much as you want in SIP. There is no limit on investing in it. However, keep in mind that there should be diversification in the portfolio. Which means that you should have invested in different asset classes. So that you are not affected much by the fluctuations of the stock market.

Start investing with Rs 100

You can start a SIP mutual fund with just Rs 100. At the same time, this limit can also be increased whenever you want. There is no limit on maximum investment in this.

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