SIP Investment: Targeting a foreign trip in future; A Rs 10K monthly SIP may do your job! Know how
Power of SIP: People interested in visiting different places dream of a foreign trip. Going to a new country, knowing different cultures, visiting historic places, talking to locals, and enjoying their cuisines is a dream for many. But most of us get discouraged by the idea that foreign trips cost dearly. However, arranging funds for a foreign trip may not be that hard financially. Investing Rs 10,000 a month in mutual funds through Systematic Investment Plan (SIP) can do the job for you. Know how-
Power of SIP: Visiting different places around the world is a dream for many of us.
However, many of us don't plan an overseas visit because we think it will cost very much.
Shelling out that money in one go may not be possible for you.
But you don't need to be discouraged.
You can plan that through investment planning.
Even if you invest Rs 10,000 a month in mutual funds through Sytematic Investment Plan (SIP) and get average returns, you may accumulate money in the short period that can help fullfil your dream of a foreign visit.
In this write-up, know the calculation of arranging funds for your foreign trip through SIP investment.
Power of SIP: Fund that can be created from Rs10K SIP?
According to the SIP calculator, if you make a Rs 10,000 investment a month in SIP and get returns of 12 per cent every year, in three years, your total investment will be Rs 360,000, and your total estimated returns can be Rs 4,35,076, which means that you can earn estimated capital gains of Rs 75,076.
If you get a 15 per cent return on the same investment amount, your estimated return will be Rs 456794, which will include capital gains of Rs 96794.
Now, the interesting thing is that if you increase your monthly SIP investment just by Rs 2,000 and make an SIP of Rs 12,000 instead of Rs 10,000, at an estimated return of 12 per cent annually, your total returns can be Rs 522092, out of which Rs 432000 will be your investment and Rs 90092 can be capital gains.
AK Nigam, Director of BPN Fincap, says that mutual fund SIP can help you plan your future in a better way.
You can choose the investment amount and tenure as per your financial goals.
For example, if someone aims to buy a car, take a foreign trip, etc., in the next 3-5 years, they can prepare a projected fund with the help of SIP.
However, mutual fund SIP investors should know that these investments are subject to market risks.
Therefore, their returns depend on market movements and can fluctuate with market performance.
In such a situation, the investor should decide to invest after looking at their income, target, and risk profile.
Estimated cost of foreign trip
If you want to go on a Europe tour, then a fund of Rs 10,000 in a monthly SIP prepared over 3 years can be helpful.
On the website of travel booking aggregator MakeMyTrip, a Europe trip package for one person for 16 nights and 17 days is priced at around Rs 3.30 lakh.
So, there are many different types of packages.
Some packages also start at Rs 2.85 lakh per person.
In this way, a SIP of Rs 10,000 can be helpful for achieving the target of a foreign trip.
(Disclaimer: Here is the calculation of estimated funds from mutual fund SIP. This is not the actual figure. Investing in mutual funds is subject to market risks. Consult your advisor before investing.)
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