SBI mutual fund: SIP or systematic investment plan is fast gaining traction among the Indian millennials, especially among the youth who are in the nascent phase of their career and can't afford to set aside a huge amount for investment. But, like others, they also have some goals in their life which a SIP can fulfill if it's done for long-term. According to the SBI mutual fund SIP calculator, if an investor starts SIP with monthly investment of Rs 3000 for a period of 25 years, he or she would get Rs 56,92,905 as maturity amount (assuming the rate of return at 12 per cent as majority of the investment experts say in long-term investment one can expect at least 12 per cent return in mutual fund or SIP).

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Source: SBI Mutual Fund SIP Calculator

However, the same SBI mutual funds SIP calculator says that if the investor does a top-up SIP increasing Rs 500 per annum in its monthly SIP, the return he or she would get in the same time would be Rs 1,19,11,717, which is 109.24 per cent higher than the SIP without top-up. So, an investor can become a crorepati in 25 years if he or she starts with Rs 3,000 monthly SIP with a top-up of Rs 500 per annum.

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Speaking on the benefit of top-up SIPA Omkeshwar Singh, Head – Rank MF, Samco Securities said, "Systematic Investment Plan (SIP) helps you to invest a fixed amount at periodic intervals (daily, monthly, and quarterly) over a period of time. As the investor’s income goes up, he is able to set aside a higher surplus for investing. A SIP Top Up allows you to increase the monthly investment amount periodically. SIP top-ups can be specified as a percentage or a fixed amount every year. The minimum SIP Top-up amount is Rs 500 and in multiples of Rs 500."

Source: SBI Mutual Fund SIP Calculator

Elaborating upon the benefits of a top-up SIP Omkeshwar Singh listed out the following advantages of a top-up SIP:

1] Adapts to your rising income;

2] Helps reach financial goals faster;

3] Helps fight inflation; and

4] Allow you to keep investing in an existing plan rather than open a new one.

Source: SBI Mutual Fund SIp Calculator

However, if an investor decides to invest the same amount of SIP with Rs 500 yearly top-up for 20 years, he or she would get Rs 59,26,524 as maturity amount instead of Rs Rs 29,97,444 maturity amount that he or she would have got without choosing Rs 500 yearly top-up. the above-mentioned numbers clearly suggest that Rs 500 top-up in SIP helps an investor to grow his or her maturity amount by around 97 per cent.