If your dream is to have a corpus of ₹ 1 crore after 10 years, then it has to start from today with proper planning and disciplined investment. Often people feel that it is difficult to deposit such a huge amount, but this goal can be easily achieved by investing a small amount every month through SIP (Systematic Investment Plan). Also understand here that if the return is high then the installment may be less, and if it is low then it may be a little higher. Here we will understand how much SIP will have to be done every month from today to get ₹1 crore, and what the complete calculation behind it says.
What is SIP?
SIP (Systematic Investment Plan) is a disciplined investment method, in which investors invest a fixed amount in mutual funds at regular intervals. This is a way of investing in mutual funds, which allows people to invest gradually on a monthly or quarterly basis. The objective of SIP is to make investing easy and manageable, so that investors can achieve long-term wealth creation without any financial pressure. In this method of investment, one can start with small amount, due to which the risk of market fluctuations is also balanced. Overall, SIP is an effective option for investors who want to achieve their financial goals with regular investments, discipline and better returns in the long run.
With how much SIP will the target of Rs 1 crore be achieved?
Here first of all know that there is no limit on returns in mutual funds. This return can also be quite high. If you expect 12% annual return (long term average in equity mutual funds), then on this basis we can understand from the calculation that by doing SIP of minimum Rs 1 crore every month, the target of Rs 1 crore will be achieved in 10 years. According to angelone’s SIP calculation, based on 12 percent return, you will have to do SIP of at least ₹ 43,050 every month. By doing this you will have a fund of ₹ 1,00,02,197 ready after 10 years.
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