Step Up SIP: Starting investment early in your career is a good habit. The early you start your financial planning, the sooner you achieve your financial goals. Market-linked returns attract the new-age investors since they provide good returns compared to guaranteed return investment, where the interest rate is fixed. No wonder, mutual fund ionvestment through systematic investment plan (SIP) has emerged as a popular investment option in the last five years.

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Investment through SIP is more likly to generate higher capital gains than the lump sum plans.

If you invest through SIP in the long term, the returns you get are likely to be many times than your principal amount.   
 

Step Up SIP: How to plan your investment?

If you want to make money through SIP, then the long-term strategy is the best way.

A good strategy is to save at least Rs 100 a day from your daily expenses and invest it in mutual funds through SIP.

It means you can invest Rs 3000 a month and this little amount can do wonders for you in the long term
 

Step Up SIP: Start SIP from Rs 3000

According to an investment advisor, if you want a create a big corpus, then equity mutual funds can be a good option.

If an investor makes their first investment of Rs 3000 at the age of 30 and makes regular investments for the next 30 years, or till the retirement age of 60 years, a huge corpus can be built. 
 

Step Up SIP: Accurate formula of SIP

As per the advisor, you have to invest in mutual funds for 30 years.

If you get an estimated return of 15 per cent, then the path to becoming a crorepati becomes very easy.

The biggest benefit is compounding, which means, at the end of every investment cycle, your total amount, including returns, becomes your principal.

Since the principal changes every year, a return of 15 per cent every year can help you build huge fund.

But, what is more important here is to know about the accurate SIP formula, which will add value to SIP.

This formula is known as Step Up SIP. All you have to do is maintain a step-up rate of 10 per cent every year.
 

Step Up SIP: How to create a corpus of Rs 4.17 crore?

You are 30 years old. Save Rs 100 daily and invest it in mutual fund through SIP; target a long-term strategy for 30 years.

Keep doing 10 per cent step-up every year.

If you start with Rs 3000, you will have to increase it by Rs 300 next year.

After 30 years you will have a maturity amount of Rs 4,17,63,700 (4.17 crore).

According to SIP calculator, your total investment in 30 years will be Rs 59,21,785 (Rs 59.22 lakh).

But, here there will be capital gains of Rs 3 crore 58 lakh 41 thousand 915.

This is the magic of returns in SIP. In this way, with the help of of the step-up formula, you will have a huge fund of Rs 4 crore and 17 lakh.