SIP calculator: In India, there are several investing options for the girl child. These investing alternatives assist parents or guardians in building a sizable corpus for their female child's future requirements. Choosing the correct investment to protect your child's later years might be difficult.

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In this article, we will discuss a systematic investment plan (SIP) that can enable an investor to build a corpus of Rs 14,41,466 lakh corpus in 18 years by investing Rs 1,000 a month.

SIP: How to accumulate Rs 14,41,466 corpus

To accumulate a big amount, you need to start SIP just after the birth of your girl child. Due to being market-linked, you will undoubtedly have some risk in SIP, but long term SIP can give you returns that are not possible with any other scheme. Experts consider the average long term return of Mutual Funds SIP to be 12 per cent. However, it can also be more than this sometimes.

Start SIP with just Rs 1,000/month

If you start SIP for your child even with Rs 1000 at the time of birth, then by the age of 18 years you can accumulate an amount of more than Rs 14 lakh. For this, you just have to make a top-up of 10 per cent in SIP every year. Top-up SIP is a facility in which you can add some more amount to your regular SIP. You will have to increase the current investment amount by 10 per cent every year, which is not a huge amount.

How to save Rs 14,41,466: Know calculations

Suppose you start a SIP of Rs 1000 just one month after the birth of your child. Deposit only Rs 1,000 for one year. Next year you will have to increase 10 per cent of Rs 1,000 i.e. Rs 100. In this way, your SIP will be Rs 1100 next year. Next year, you have to increase 10 per cent of Rs 1100 i.e. Rs 110 more, i.e. then your SIP will become Rs 1210. Similarly, every year you will have to add 10 per cent to the existing amount.

You have to run SIP with this formula for 18 years. In this situation, you will invest a total of Rs 5,47,190 in 18 years. But on this, interest at the rate of 12 per cent will be Rs 8,94,276. In this way, after 18 years, you will get Rs 14,41,466 from SIP, which you can spend on the necessary expenses of the child. Whereas if the return is higher i.e. up to 15 per cent, then after 18 years you will get Rs 19,44,527.

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