SIP Calculation: With only 10,000 rupees every month, you may earn 1 crore rupees in profits. Find out how it's done

 SIP Calculation: With only 10,000 rupees every month, you may earn 1 crore rupees in profits. Find out how it's done

SIP Investment: In addition, SIP enables investors to maintain their positions during market ups and downs. When it declines, he may sell his securities to terminate the investment, and when it rises, he can add to it.

A mutual fund investment strategy called a Systematic Investment Plan (SIP) allows investors to invest a defined quantity of money over time (monthly, quarterly, or in various ways), rather than all at once. SIP investment may be started with as little as Rs. 500 each month.

It functions similarly to a recurring deposit, and you may also instruct your bank to automatically deduct the required amount when due. These funds are used to acquire units of the fund, which produces returns depending on the portfolio of companies it owns, at the appropriate NAV (Net asset value). The unique feature of SIP is that it may assist in building a sizable corpus without placing stress on the wallet. Through this, you can even create a crore-dollar corpus.

How to attain the desired result

Let's say that your yearly return on investment is about 12%. If you make an investment of Rs 10,000 every month in such a scenario, it would take you around 20 years to accumulate Rs 1 crore.

To attain your first Rs 1 crore and Rs 3 crore with a monthly investment of Rs 30,000, it would take you roughly 12 years and 20 years, respectively. You may, however, attain Rs. 1 crore in 10 years and Rs. 3 crore in 16 years provided you can raise your monthly SIP amount by 10% each year.

Why is SIP superior?

SIP investments in mutual funds enable investors to spread out the expense of their holdings. In addition, the fact that a portion of your pay is automatically taken out of your account each month and invested helps you form the habit of investing.

In addition, SIP enables investors to maintain their positions during market swings. When it declines, he may sell his securities to terminate the investment, and when it rises, he can add to it.