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SIP: Become a Crorepati! Invest Rs 360000 and Make Your Wealth Grow to Rs 10897664, Check How

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SIP

SIP: Investing has long been heralded as the key to financial success, but with so many options available, it can be challenging to determine which avenue is right for you. One investment strategy that has gained immense popularity in recent years is Systematic Investment Plans (SIPs). In this article, we will delve into the details of SIPs and explore how they can help you achieve your financial goals, with a focus on returns over different time horizons.

Understanding SIPs

SIPs are a method of investing in mutual funds where an individual contributes a fixed amount at regular intervals, typically monthly. This disciplined approach to investing offers several advantages, including rupee cost averaging and the power of compounding.

Return on Investment

Let's take a closer look at the returns you can expect from SIP investments over various timeframes, assuming an expected annual return of 15%:

Duration SIP Amount (₹) Future Value (₹)
5 years 1000 0.9 Lakhs
8 years 1000 2 Lakhs
10 years 1000 3.2 Lakhs
12 years 1000 4.7 Lakhs
15 years 1000 8.3 Lakhs
18 years 1000 14.2 Lakhs
20 years 1000 20.2 Lakhs
22 years 1000 28.6 Lakhs
25 years 1000 48 Lakhs
28 years 1000 80.1 Lakhs
30 years 1000 1.1 Crores

Wealth Building Example

Consider this scenario: You invest Rs. 360,000 (3.6 Lakhs) over a period of 30 years. With an expected future value of Rs. 11,297,664 (1.1 Crores), your wealth gain would amount to Rs. 10,897,664 (1.1 Crores). This substantial growth demonstrates the power of compounding over the long term.

SIP vs. Other Investment Options

Let's compare SIPs with some of the most popular investment options available to Indian citizens:

Investment Option Interest rate (%) Features
Sukanya Samriddhi Account Scheme 8.2 Account for girl child, tax benefits
Senior Citizen Savings Scheme 8.2 Higher interest rate for senior citizens
National Savings Certificate (VIII Issue) 7.7 Fixed interest payout, moderate returns
Kisan Vikas Patra 7.5 Maturity period of 115 months
Mahila Samman Savings Certificate 7.5 Account for women, moderate returns
SIP (Mutual Funds) Expected return varies Market-linked returns, potential for higher growth

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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