SIP Investment: Big news! Deposit a small amount every month, you will get a fund of 50 crores rupees, deposit like this

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SIP Investment: Will get 2 crores in 15 years, Will be called millionaire at the age of 40
SIP Investment: Will get 2 crores in 15 years, Will be called millionaire at the age of 40

You can start investing in Mutual Fund SIP with a small amount, and as your income grows, you can increase your investment every year.

If you invest in mutual fund SIP, then you can make a fund of up to Rs 50 crore in 20 years by investing a small amount every month. Mutual Funds are one of the low initial investment options, with the added benefit of rupee cost averaging and the convenience of equity investment, SIP is one such option where you can start investing with just Rs.100. You can start investing with a small amount, and as your income grows, you can increase your investment every year. How the numbers add up when you increase your SIP every year.

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If you increase your investment every year by 10% every year, you will need a monthly SIP of around Rs.2,20,000 to accumulate Rs.50 crores. If you can gradually increase your investment limit, you need to start with less than half of what you need in a normal SIP. In such a long investment journey, risk mitigation is more important than chasing returns. You will be able to add money only if you stay in the market. And this will happen only when you are sure that your investment will not be affected due to sudden market correction.

To gain this confidence to stay invested, it is best to diversify your investments across multiple asset classes such as equity, debt and gold. This will reduce the impact of sudden corrections in the market, and you will have the peace of mind to continue with your investment for 20 years. A simple strategy can be to pick a few index funds from large-cap and mid-caps. One can make sure to invest some portion in fixed income options and gold.

Do take advice from your expert

Explain that before investing in mutual funds, investors must take advice from a financial advisor. A professional financial advisor can help in assessing the risk profile of the investor and recommend a tailored investment plan. Investors should also do thorough research and understand the fund’s objectives and past performance.

Will have to invest so much

An investor should start a SIP of Rs 5,05,500 per month to build a corpus of Rs 50 crore assuming a return of 12% per annum over the next 20 years. If the investor is ready to increase the SIP amount by 10% every year, he can create a corpus of Rs 50 crore by starting a SIP of Rs 2,67,500 per month.

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