Power of Rs 2,000 Monthly SIP: Can one achieve Rs 3.18 crore corpus by investing Rs 2,000 monthly? If yes, in how many years
Power of Rs 2,000 Monthly SIP: Starting with a small monthly SIP and creating a gigantic retirement corpus may appear to be an uphill task, but it can be achieved if one sticks to their investment for a long time.
Power of Rs 2,000 Monthly SIP: Start investing early has its own benefits. Even if one starts with a small monthly amount, gets average returns, and sticks to regular investment for a long time, they can create a large corpus. It happens because in certain investments, investors get compound growth. Duration of investment plays an important role in creating a large corpus.
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(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)
How one can achieve that
Why SIP?
Other advantages of SIP investment
How SIP investment work
When one invests through SIPs, they purchase a certain number of net asset value (NAV) units in a mutual fund scheme. Since the price of NAV keeps changing every day, they buy a different number of NAVs every investment cycle. So, even if the mutual fund scheme is not performing well for a long time, the tactic of buying NAVs at different rates provides rupee cost averaging and helps lessen the impact of deficit. In the long run such as 7 years and above, SIP investment is most likely to bring positive results.
How compounding works
How Rs 2,000 monthly SIP can work
Many people can easily start a Rs 2,000 monthly SIP. If their income rises, they can increase the amount, but for our calculation, we are assuming that they will not increase their investment amount. A Rs 2,000 monthly SIP investment will not show magical results in the short term, but in the long term, it can balloon to a large corpus.