SIP (Systematic investment plan) is a disciplined way of investment in which you invest a fixed amount regularly in mutual funds. The payment can be made monthly or quarterly.
This means you get the interest on both the principal amount and the interest that has accumulated from previous periods.
If you want to take the full benefit of compounding, you should avoid withdrawing the amount before maturity.
If you are going through some financial issues, you can adjust the amount too as per your budget.
Top-up SIP Flexible SIP Perpetual SIP
NAV (net asset value) is the price at which the investors buy or sell mutual fund units
Monthly SIP: Rs 42,500 Annual return: 12% Duration: 30 years Total investment in 30 years: Rs 1.53 crore Estimated returns in 30 years: 13.47 crore Maturity amount: 15 crore
Disclaimer: Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.