SIP Calculator: Find out how much Rs 5,000 monthly investment will grow in 20 years

Savings are very important in everyone's life. However, many people do not think about saving. They think about meeting current needs. They take loans when necessary and repay them slowly later. This is not the right approach. Debts do not have much use except that all your hard work goes in the form of interest. When unexpected needs and emergencies arise, it is painful to have no savings. To prevent this from happening, everyone should plan for savings.

Before starting savings, you should set a goal. You should save keeping in mind your income and expenses. You should make it a habit to allocate some amount for savings as soon as you receive income. Many people try to invest the remaining amount after expenses. It is very important to prioritize savings before expenses to achieve financial goals.

Wealthy people look to invest heavily. However, the middle class and daily wage earners cannot invest heavily. For such people, SIP (Simple Investment Plan) is a good idea. Such are mutual funds. If you invest Rs.5,000 per month in an equity mutual fund, you can get good returns in the long term. The interest rate for this is also good.

To get a 12% growth rate in equity mutual funds, you need to invest for at least 20 years. That means if you invest Rs.5,000 per month for 20 years, you can get almost Rs.50 lakhs. Your investment in this is only Rs.12 lakhs. The rest is all profit.

If you invest Rs.10,000 per month in this equity mutual fund for 20 years, you can get Rs.1 crore as a return with a 12% interest rate.

If you invest in a SIP scheme for 25 years, you can get more income. That means if you invest Rs.5,000 per month, you can get up to Rs.95 lakhs in 25 years with a 12% growth rate.

If you invest Rs.10,000 per month, you will get an income of Rs.1.9 crore in 25 years. Similarly, if you invest Rs.3,000 per month for 30 years, the maturity amount will exceed Rs.1 crore. This amount will meet your needs at the right time.

Before investing anywhere, it is very important to consider the deadline to achieve financial goals. The impact of inflation should also be taken into account. For example, if you need Rs.25 lakhs for your child's education in 20 years, the amount required for education after 25 years may increase to Rs.35 lakhs. Therefore, calculate your income sources and invest accordingly, Rs.5 thousand, Rs.10 thousand, etc. The more you can invest, the more you can profit in the future.

Using a SIP calculator can help determine the investment needed to achieve financial goals. By knowing how long it will take to achieve the goal, the investment can be adjusted accordingly. Investing in equity mutual funds provides enough income to withstand the effects of inflation.

Experts suggest that SIP investments can be started in 2 or 3 mutual fund schemes. These funds should be diversified across different market capitalization sectors.

If not already done, it is good to set long-term goals and start saving. Delaying investment requires more investment to achieve goals. By starting savings early, you can save a small amount regularly and get a large amount at maturity.