In the rapidly changing world, everyone wants their future to be secure and their bank balance to be strong. But the problem is that income is fixed, expenses keep increasing and savings lag behind. In such a situation, if someone tells you that you can easily add Rs 50 lakh in just 15 years, you will be surprised to hear. But the truth is that it is absolutely possible. You just have to understand how to invest properly and how much SIP to do every month. This small step can make your big dreams come true.
How does your money grow?
Equity is considered the biggest weapon for long term targets. Even a small SIP every month can turn into a huge amount by taking advantage of the fluctuations in the stock market. Equity funds grow your money faster while debt funds keep the portfolio stable and safe. Therefore a mix of SIPs gives both benefits to the investor.
How many SIPs will make Rs 50 lakh every month?
If the annual return is around 9%, Rs 13,213 will have to be invested every month. At the same time, if the return is 10% then the SIP will be around Rs 12,063. Apart from this, investing Rs 10,996 every month is enough at 11% return and if you get 12% return then only Rs 10,008 monthly SIP will make you Rs 50 lakh in 15 years. The most interesting thing is that you will not have to invest the entire Rs 50 lakh yourself. You deposit a total of only Rs 18 to 24 lakh in 15 years, the rest is the wonder of fund compounding.
How to make a sure plan to reach Rs 50 lakh?
- Start monthly SIP as per your situation.
- Increase SIP every year as income increases, this is called step-up SIP.
- Review the portfolio once a year.
- Don’t panic if the market falls, continue SIP, this is where you make the most money.
Disclaimer: This is not investment advice but just information. Consult your financial advisors before taking any decision related to money.
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