Why to spend Rs 1,02,000 on an iPhone, when you can double it by investing

Marking the 10th anniversary, Cupertino-based tech giant Apple on Tuesday evening launched iPhone X, which was the highlight of the event. Along with it, the company also launched iPhone 8 and iPhone 8 Plus.

Apart from the features, what grabbed the attention was pricing of these phones in India. 

This is how it is: Apple iPhone 8 price in India will start at Rs 64,000 for the 64GB variant of the iPhone 8. Apple iPhone 8 with 256GB storage will cost Rs 77,000. The iPhone 8 Plus will start at Rs 73,000 for 64GB storage and Rs 86,000. 

Apple iPhone X will cost Rs 89,000 in India for the 64GB variant while the 256GB version will cost Rs 102,000. The iPhone X launches officially on November 3.

With this costing, for Indians, you can spend that much of money over a luxurious vacation, or buy gold or try clearing your EMIs and so on. 

Those who want to own a premium phones can surely go ahead while spending whooping Rs 1,02,000 amount. But, isn't it a better option to invest this much money and double it.

Here comes Systematic Investment Plan (SIPs).

Investing in Mutual Funds is always advisable despite the risk factor it carries. If you invest a big amount in mutual funds at one go, you can earn robust returns. 

Now, look at this scenario. For instance, you are spending Rs 1,02,000 on a phone which you will be using for say six years. But, what if you put the same amount in SIPs for the same time period. 

If you park lump sum of Rs 1,02,000 for six year and considering the expected rate of return of 15% per annum, at the time of maturity you will get back Rs 2,35,932. The amount is more than double and your earning on investment will be Rs 1,33,932. 

Invest Rs 1 lakh to earn 37 times more return in 20 years