Start early, invest continuously, millionaires will also be made from small SIPs, know formula

Sip The long term is best for wealth creation. Low -earned people can also become a millionaire through SIP. However, it is necessary that he should start Sip soon and continues to invest (for 20 to 25 years). If you do this, then no one can stop them from making a big fund. Let us know how you can make big money than SIP.

Understand the power of SIP from the example below

If an investor starts investing in mutual funds from SIP of just Rs 2,000 every month, he will invest a total of Rs 4.32 lakh in 18 years. With a compound return of Rs 19.2 lakh, the total portfolio price will be Rs 23.5 lakh. If it increases the SIP to Rs 4,000, the corpus will almost double to Rs 47 lakh, with Rs 38.4 lakh returns.

Not only this, Rs 6,000 monthly SIP will deposit Rs 57.6 lakh in 18 years. At the same time, with a SIP of Rs 8,000, the investor will invest Rs 17.28 lakh and after 18 years will get Rs 94.1 lakh. If he does a monthly SIP of Rs 10,000, then a total investment of Rs 21.6 lakh can reach Rs 1.18 crore with a compound interest, out of which Rs 96 lakh will be pure returns.

Sip is a disciplined method

SIP is a disciplined way to invest in mutual funds, where the person invests a certain amount on a regular, monthly or quarterly basis. SIP helps investors to give better returns by saving market fluctuations, which means that when the stock market falls, prices are low and the investor gets more units and when the market is up, a low unit, which reduces the average cost over time. This protects investors from market volatility and eliminates time requirement in the market.

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