SIP or Systematic Investment Plan is a mutual fund investment scheme that allows investors to invest a fixed amount regularly.
Here is how you can take advantage of compounding.
You will get better returns if you start an SIP early.
It would help if you tried to continue the SIP to get better compounding benefits. If you want to achieve your goal, don't think to cancel SIP.
Currently, the minimum investment amount is Rs 500 per month.
There is no maximum limit to invest in an SIP.
SIPs can let your money grow tremendously over time due to compounding interest.
If you start SIP at the age of 30 and continue investing till 60 then you can achieve this goal of accumulating Rs 10 crore fund.
For example, if you start an investment of Rs 15,400 per month at 30 and continue investing till 60. Then you will invest a total of Rs 64,68,000. Your expected return rate is 12 per cent and you will be able to get around Rs 9,35,59,143 as interest. The maturity amount will be Rs 10,00,27,143.
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.