SIP Investment: SIP gives more returns than Fixed Deposit, know complete details

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SIP Investment: SIP gives more returns than Fixed Deposit, know complete details
SIP Investment: SIP gives more returns than Fixed Deposit, know complete details

Better returns can be achieved by investing money in mutual funds than Fixed Deposit. Because mutual funds provide returns based on the performance of the market.

Mutual Fund SIP: If you are planning to invest, then you can get good returns by investing money in mutual funds instead of fixed deposits. Fixed Deposits and Mutual Funds are one of the very popular investment options. Both the options offer good returns to the investors helping them achieve their goals over a period of time. While Fixed Deposits offer guaranteed returns at pre-determined interest rates, Mutual Funds offer returns based on market performance. However, the economy has been badly affected by the outbreak of Corona virus.

Generally, the rate of return in mutual funds is higher than that of fixed deposits. This is because mutual funds invest in market linked investments such as equity and debt funds. Funds in Mutual Funds are effectively managed by professional fund managers and they invest the fund money with the sole objective of getting higher returns and higher investment.

If you want to invest in mutual funds. So first you set your goal. After that start investing in the right investment options. The longer your investment is, the higher the returns. SIP is recommended for long term investment. The specialty of Systematic Investment Plan is that it gives you multiple time returns in the long term. In such a situation, the profit will be more if you start investing along with earning.

Right time to invest when prices are low

After the corona pandemic the market has been badly affected and the returns have come down sharply, this is the best time to invest in mutual funds. This is because the value of MF is very low, so the fund which you buy now at low value may increase in value after the market picks up. That is why it is said that the best time to buy is when the prices are low and to sell when the prices are high.

Rs 100 SIP is possible for everyone

Generally, youth start earning at the age of 23-25. Earning starts early, but investment starts late. Due to this delay, financial stability is not available. In this article, we will tell you how SIP of 1000 rupees makes you a millionaire by investing as soon as you start earning. 1000 rupees every month is a very small amount to invest for your future.

Get this much return

  1. According to the SIP calculator, if a youth starts depositing Rs 1000 every month at the age of 25, he can easily prepare a fund of Rs 40-60 lakh for his retirement.
  2. At the age of 25, if someone does a SIP of Rs 1000 every month and gets an average return of 11%, then on retirement i.e. at the age of 60, he will get a total of Rs 49.73 lakh.
  3. In these 35 years, his total deposit will be only Rs 4.2 lakh, while the return is Rs 45.53 lakh and the net return is around 50 lakh.

Fund of 12 lakhs decreases after delay of 5 years

If the average return is 10%, then he will get a total of Rs 38.28 lakh. If the return is 12%, then his fund will be Rs 65 lakh. If the investment is started from 30 years and the return is 11%, then he will get a total of Rs 28.30 lakhs on retirement. This calculation clearly shows that with a delay of just 5 years, his retirement fund gets reduced by about Rs 12 lakh. This is the reason why financial experts advise to start investing as early as possible.