Time plays an important role in investing in mutual funds through SIP (Systematic Investment Plan). Despite the volatility of the market, if one keeps investing a fixed amount every month, then the net asset value in his mutual fund keeps on increasing.
If you are not short of money and can invest a substantial amount every month, then you can become a millionaire in 15 years. On the other hand, by investing with this special formula, you can get an amount of more than Rs 10 crore by investing 30 years. For this, you have to adopt three formulas of mutual funds. Let us know these formulas.
Time plays an important role in investing in mutual funds through SIP (Systematic Investment Plan). Despite the volatility of the market, if one keeps investing a fixed amount every month, then the net asset value in his mutual fund keeps on increasing.
This is the first formula of investment
Investment advisor Balwant Jain said that there are two types of formulas for investing in mutual funds. The first formula is 15*15*15. According to this formula, if a person invests 15 thousand rupees every month at the rate of 15 percent return for 15 years, then he will have a fund of about Rs 1.02 crore.
This is the second formula of investment
Apart from this, the second formula of investment is 15 * 15 * 30. According to this formula, if a person invests 15 thousand rupees every month for 30 years at the rate of 15 percent return, then he will have a fund of Rs 10.51 crore. During this, he will invest Rs 54 lakh and the return will increase to Rs 9.97 crore.
The more SIP a person does in mutual funds for a longer period, the more benefit he will get. However, every person should earn returns by making such investments according to his convenience and duration and income.
Delay of five years can cause big loss
If an investor of 25 years delays starting investment in SIP by another five years, then how it has a big impact on earnings, we can understand it on the basis of calculation. For calculation, assume that the investor starts investing Rs 5000 every month at the age of 30 and keeps investing for 25 years. In such a situation, on the basis of an average return of 12 percent, at the time of maturity, he gets a total amount of Rs 84,31,033. At this time the age of that investor will be 55 years.
If that investor had started investing in SIP at the age of 25, then the entire period would have been 30 years. That is, the investment would have been for 30 years instead of 25 years. And then he would have got a total amount of Rs 1,52,60,066 at the time of maturity based on an average return of 12 per cent.
Now, if we understand this calculation carefully, we find that on starting investment at the age of 25, he would have got Rs 68 lakh (Rs 68,29,033) extra, which was not available due to starting investment at the age of 30. Though you can get this huge amount but then you have to wait till the age of 60 years.
