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SIP: Become a Crorepati! Invest Rs 1260000 and Get Rs 44581935 on Maturity, Check Details

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SIP Investments

SIP: A successful and secure financial future can be attained via prudent investing. The systematic strategy to building wealth through mutual funds known as the Systematic Investment Plan (SIP) is one of the most successful investment strategies. Investing a certain amount on a regular basis over time allows SIP to take advantage of compound interest to significantly increase your wealth. Let's examine in more detail how a little SIP investment can provide impressive profits across a variety of time periods.

Understanding SIP Returns Over Time

Here's a breakdown of how an SIP of ₹3,000 per month can accumulate over various durations, assuming an expected annual return of 15%:

Duration SIP Amount (₹) Future Value (₹)
5 years 3,000 2.7 Lakhs
8 years 3,000 5.6 Lakhs
10 years 3,000 8.4 Lakhs
12 years 3,000 12.1 Lakhs
15 years 3,000 20.3 Lakhs
18 years 3,000 33.1 Lakhs
20 years 3,000 45.5 Lakhs
22 years 3,000 62.1 Lakhs
25 years 3,000 98.5 Lakhs
28 years 3,000 1.6 Crores
30 years 3,000 2.1 Crores
35 years 3,000 4.5 Crores

Explaining the Wealth Accumulation

The table shows the power of compounding over time. With a 15% annual return and a ₹3,000 monthly investment over 35 years, you could potentially amass an incredible ₹4.5 Crores.

Wealth Growth Analysis

Let us consider an investor who invests ₹12.6 Lakh (₹3,000 per month for 35 years) and builds up ₹4.5 Crores of wealth over 35 years. The dissection would be as follows:

  • Expected Amount: ₹4,45,81,935 (4.5 Crores)
  • Amount Invested: ₹12,60,000 (12.6 Lakhs)
  • Wealth Gain: ₹4,33,21,935 (4.3 Crores)

This demonstrates the enormous financial benefit that may be attained through long-term, focused investing.

SIP vs. Other Investment Options

Let's examine how the interest rates of well-known small savings plans in India compare to SIP returns:

  • Sukanya Samriddhi Account Scheme: 8.2%
  • Senior Citizen Savings Scheme: 8.2%
  • National Savings Certificate (VIII Issue): 7.7%
  • Kisan Vikas Patra: 7.5%
  • Mahila Samman Savings Certificate: 7.5%

Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)

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