Here's how you to make Rs 2 crore by 2050 if you invest Rs 5,000 every month

If you want to become a successful investor, you should learn on how to make investment in a systematic manner.

Most of us will agree that they want their hard-earned money to multiply, but generally fail to find a key to choice. 

In such a situation, systematic investment plan (SIP) comes as the best possible option because it helps you earn higher returns on your principal money.
 
SIP is similar to regular saving scheme like a recurring deposit, as it gives an investor opportunity to start at a small sum which can be paid at regular intervals.
 
The amount you invest through SIP is used by experts of asset management companies (AMCs) to buy schemes or script like stock, debt and mutual funds market.
 
Due to the principle of cost averaging, more number of units are bought in a falling market and fewer units in a rising market. SIPs thus allow you to take part in the stock market, without trying to time it and also brings discipline to your investments.
 
Often, we are confused with what amount we should start SIP or what should the target of our investment.
 
Considering the booming mutual fund market, investment through SIP has given returns in the range of 8% to 15%. So let's understand how much do we need to invest every month if we want to start investment for longer term, let's say till 2050.
 
You can start SIP from an investment of Rs 1000 per month. From the calculator, you can see that by 2050, you would invest about Rs 4.20 lakh sum and find future value rising nearly up to Rs 44 lakh at an expected return of 10.50%.

And, if you make investment of higher amount like Rs 5000, your total investment would be Rs 21 lakh till 2050, and at 10.50% expected return, future value of the investment reaches to a whopping over Rs 2.18 crore.

 
So what are you waiting for. You are just few days away from entering into a new year. Make a resolution for starting a SIP if you want to reap such benefit.
 
According to Motilal Oswal report, here are few benefits of investing in SIP.
 
Power of saving
 
The power of saving underlines the essence of making money work if it is invested at an early age. The longer you delay, the greater financial burden you have to meet desired goals. Saving a small sum of money regularly at an early age makes money work with significant impact on wealth accumulation.
 
Rupee cost averaging
 
Timing the market is a difficult task. Rupee cost averaging is an automatic market-timing mechanism that eliminates the need to time one's investments.
 
Here, one need not worry about where share prices or interest are headed as investment of a regular sum is done at regular intervals; with fewer units being bought in a declining market and more units in a rising market. Although SIP does not guarantee profit, it can go a long way in minimizing the effects of investing in volatile markets.
 
Convenience
 
In just three simple paperless steps you can invest in SIP

• Register for SIP online
• Fill the required details
•  Ensure availability of fund

 
Disciplined investing
 
It’s the key to investing success. Regular investment makes you disciplined in your savings and also leads to wealth accumulation. Systematic investing is a time-tested discipline that makes it easy to invest automatically. Investing regularly in small amounts as it can lead to better results than investing in a lump sum.