Invest Rs 5,000 monthly in SIP, become crorepati in few years: Here's how
Regularly investing a small amount, even just Rs 5,000 per month, through SIPs can pave the way to becoming a crorepati surprisingly quickly.
Investors can potentially see significant returns.
Understanding the method is crucial. Investing Rs 5,000 monthly in a mutual fund assuming a 12% annual return on the mutual fund.
Indices like Nifty 50 or Sensex typically yield around 12% annually.
With a monthly Rs 5,000 investment, one could become a crorepati in a few years. SIP stands for Systematic Investment Plan. The investment of Rs 5,000 needs a 10% annual increase.
Investment
If an investor contributes Rs 5,000 monthly in the first year, the amount should increase by 10% to Rs 5,500 monthly in the second year.
More details
If this investment continues, the investment reaches Rs 366,000 with returns of around Rs 118,000 in 5 years.
SIP
Continuing the SIP for another 5 years, after 10 years, the total investment will be Rs 9,56,000 with returns exceeding Rs 16,34,000. After 15 years, the investment will be over Rs 1.9 million, with returns nearing Rs 4.1 million.
SIP values
After 20 years, the SIP's value, with returns, will be around Rs 1 crore. In just over 20 years, the SIP's total value will reach approximately Rs 1.067 million.
Disclaimer:
Market investments are subject to risk. Consult experts before investing.
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