The Systematic Investment Plan (SIP) is a profitable investment option for people. SIP is a service provided by mutual funds that enable investors to regularly invest a specified amount into a mutual fund plan. Instead of investing all at once, a person can do it once a month or once every three months.
Investors have the opportunity to grow a sizeable sum through SIP for their mid-term investing objectives, such as higher education for children, fantasy holidays, sabbaticals, etc. Even if you are unable to invest a large sum of money at once, systematic investing can help you build wealth little by little.
We'll explain how to amass Rs. 50 lakh with a SIP plan today. Investments should be increased every time one's income increases, according to tax and financial experts. a yearly increase in mutual funds A suitable choice for that is SIP.
If you're wondering if an investment goal of Rs. 50 lakh in 10 years is realistic, SEBI-registered tax and investment expert Jitendra Solanki said that Rs. 50 lakh investment goal in 10 years is a little ambitious and for that, the investor would require investment discipline like continuing one's monthly SIP without fail in any circumstances.
In addition, the investor should use an annual step-up to boost their monthly SIP. An investor will be able to start with the smallest monthly SIP amount feasible thanks to this. When asked how much return can be expected after a mutual fund SIP investment for 10 years, experts say that one can expect a return of roughly 12%.
Mutual Fund Calculator
Using the assumption that a step-up of 15% each year is made, a return of 12% is anticipated, and the person intends to amass Rs. 50 lakh in 10 years. The mutual fund return calculator or mutual fund SIP calculator in this instance advises that the investor must begin a mutual fund's SIP with an investment of Rs 12,500 each month.
