SIP is called Systematic Investment Plan. This is the easiest way to invest in mutual funds. Today you can start SIP with just Rs 100. However, the money received under mutual fund SIP depends on the fluctuations in the stock market. Let us know how long it will take to become a millionaire if you invest Rs 250 every month in SIP.
Mutual funds have become very popular among investors today. The returns received in this depend on the fluctuations of the market. One can invest in SIP even without a demat account. Apart from this, you also get the option to start SIP on many UPI apps like PhonePe.
Today we will specifically talk about SIP calculation. You can become a millionaire even by saving Rs 250 every month. The amount of Rs 250 seems very small, but this amount will make you a millionaire.
Let us know for how long you will have to invest in SIP to become a millionaire.
Understand the calculation
We have considered the return to be 12% during the calculation. Because the minimum expected return in a mutual fund is 12%. However, this return can be more or less. It depends on the fluctuations in the stock market.
Calculation
Investment amount – Rs 250 per month
Interest rate received -12%
Maturity amount -1 lakh rupees
If you want to earn 1 lakh rupees by investing 250 rupees every month through SIP, then you will have to invest for about 14 years. In these 14 years, you invest 42 thousand rupees in SIP. At the same time, you get 61,385 rupees according to the estimated return of 12 percent. At the same time, the maturity amount is Rs 1,03,385.
Apart from this, if you invest for 20 years, then you will get double the money. Which means that you will get Rs 2,29,964 in maturity. At the same time, your total investment amount is 60 thousand rupees. Along with this, you will get 1,69,964 rupees in return.
In this way, the more you increase the investment amount and investment period, the more profit you will get. If you want profit with low risk, you can invest in different funds like debt, hybrid and equity.