SIP or systematic investment plan is an investment vehicle offered by mutual funds to investors. Under this, investors can invest a small amount regularly. This can be weekly, monthly, or quarterly.

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You can even start an SIP with just Rs 100 however some mutual funds offer an SIP with a minimum of Rs 500 or Rs 1,000. 

These days investors are very much interested in making SIP investments. In July 2024, over 23,000 crore have been invested by investors in SIP for mutual funds, according to a data.

SIP calculator: What will happen if you invest Rs 100 per day?

If you start investing Rs 100 every day, this way you will be investing Rs 3,000 per month. Suppose you get 12 per cent annual returns on long-term investment in mutual funds, you will invest a total of Rs 10,80,000 in 30 years. As per the SIP calculator, you will be able to accumulate Rs 1,05,89,741 in 30 years. Your total wealth gain would be Rs 95,09,741.

In how many years you will become a crorepati if you invest Rs 500 per day?

If you start investing Rs 500 every day, this way you will be investing Rs 15,000 per month. Suppose you get 12 per cent annual returns on long-term investment in a mutual fund, you will invest a total of Rs 30,60,000 in 17 years. As per the SIP calculator, you will be able to accumulate Rs 1,00,18,812 in 17 years. Your total wealth gain would be Rs 69,58,812.

Expert's views on SIP investment

Amit Kumar Nigam, director, BPN Fincap, says, SIP is an organised way of making regular investments in mutual funds. In this, investors get the benefit of diversification, compounding, and rupee cost averaging. However, there is a risk also in SIP mutual funds.

Disclaimer: Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.