SIP Calculator: Need money for daughter's education? This SIP investment formula can help you generate Rs 1 crore

SIP Calculator: Girls in India are scaling greater heights in every sphere of importance. It is becoming possible because Indians are focusing on their daughters' education. However, one needs a good amount of money to educate their daughters since education is costly in India. But instead of worrying about your daughter's education expenses, if you start investing in mutual funds through a systematic investment plan (SIP) from today itself, the returns you will get after some years can easily cover education expenses.

In SIP, a fixed amount is deposited at every regular interval. Know here how a fund of Rs 20 lakh can be deposited through a Rs 20,000 monthly SIP.

SIP Calculator: How to make Rs 20 lakh

According to the calculation, you will have to invest Rs 20,000 every month.

This means you will invest Rs 240,000 lakh in a year.

You will have to make this monthly investment for 6 years.

That means you will invest a total of Rs 14.4 lakh in SIP for 6 years.

Now suppose, you get a 12 per cent annual return on investment along with compound interest on it, you will get a total interest of Rs 6.75 lakh.

At the time of maturity, you will get the investment amount and the compound interest amount together, the total of which will be Rs 21.15 lakh.

However, five years is a small duration when it comes to long-term investment.

If you continue your investment for the next 10 years, the returns will grow much faster because of compound interest.

SIP Calculator: How to get Rs 20 lakh just as interest 

Now if you deposit Rs 20,000 a month for four years more, or 10 years in total, your total investment will be Rs 24 lakh, while the interest you will receive on it will be Rs 22.46 lakh, and the maturity amount in 10 years will be 46.5 lakh.

SIP Calculator: How to get Rs 1 crore with 20K investment

If you start investing money when your daughter is born, you can keep investing for 15 years.

Since her higher education will start only after her schooling, you can have the leverage of investing for 15 years.

At a return of 12 per cent plus compound interest, your 20K investment per month will convert into more than Rs 1 crore.

With a 20 thousand a month SIP, your total investment in 15 years will be Rs 36 lakh, the interest you will get will be Rs 64.92 lakh, and your maturity value will be Rs 1.01 crore.

Rs 1.01 crore after 15 years can be a good amount that can help fund your daughter's education. 

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