Srinagar, Dec 4: Through Mutual Fund SIP in an investment option where you can get equity-like returns even from regular small savings. If small savings are invested regularly every month, then in the long term, a corpus of lakhs can easily be created. For example, if you save Rs 50 daily and choose the option of investing in SIP every month, you can easily build a corpus of more than R 50 lakhs in a period of 30 years. There are many such schemes of mutual funds, whose long term returns have been 12%.
Suppose, you save Rs 50 every day, which means your savings become Rs 1,500 every month. According to the SIP calculator, if you do a SIP of Rs 1,500 every month and the annual expected return is 12 per cent, you can build a corpus of Rs 52.9 lakh in the next 30 years. Your investment will be Rs.5.4 Lakhs during this entire investment period, while you will have an estimated wealth gain of Rs 47.5 Lakhs.
One of the major benefits of mutual fund SIPs is that in the long term, you get a tremendous advantage of compounding. In such a situation, if you start SIP at the age of 20 and maintain it for the next 30 years, then at the age of 50 you can have a corpus of more than Rs 50 lakh.
SIP is a systematic method of investment. In this, the investor does not have to face the risk of the direct market. At the same time, the returns are also higher than the traditional product. However, there is a risk in this too. Therefore, it is always advisable by the experts that the investor should make an investment decision after looking at his income, target and risk profile. In this, the specialty of SIP is that you can start investing with just Rs 100 per month.
Please note that this is not investment advice. Investment in Mutual Funds is subject to market risks. Please consult your advisor before investing. (Source : DNA India)
