SIP: Do you want to grow your money slowly over time? Systematic Investment Plans (SIPs) can be the answer you’re looking for. SIPs provide a disciplined approach to mutual fund investment, allowing you to contribute little sums on a monthly basis, which may add up to significant wealth over time. Let’s look at how investing Rs 1300 each month may lead to huge rewards.
Understanding SIP Returns Over Different Durations
Investing Rs 1300 a month may appear to be a little sum, but compounded over time, it can provide impressive benefits. Here’s a breakdown of the possible future value for various periods, based on a projected annual return of 17%:
| Duration | SIP Amount (₹) | Future Value (₹) |
|---|---|---|
| 5 years | 1300 | 1.2 Lakhs |
| 8 years | 1300 | 2.7 Lakhs |
| 10 years | 1300 | 4.1 Lakhs |
| 12 years | 1300 | 6.1 Lakhs |
| 15 years | 1300 | 10.8 Lakhs |
| 18 years | 1300 | 18.5 Lakhs |
| 20 years | 1300 | 26.3 Lakhs |
| 22 years | 1300 | 37.2 Lakhs |
| 25 years | 1300 | 62.4 Lakhs |
| 28 years | 1300 | 1 Crore |
| 30 years | 1300 | 1.5 Crores |
As you can see the longer you invest the higher your profits will be. Over 30 years, a monthly investment of Rs 1300 might rise to an astonishing Rs 1.5 crore!
Analysing a Real-Life Scenario
Let’s look at a real-life scenario to demonstrate the potential of SIPs. Suppose you invest Rs 1300 each month for 30 years, with an estimated return of Rs 1.5 crores and a total investment of Rs 4.68 lakhs. The wealth increase in this situation would be Rs 1.41 crore, demonstrating SIPs’ tremendous growth potential.
Comparing SIP with Other Investment Options
While SIPs can yield excellent returns, it is important to compare them to other common investment options available in India. Here’s a comparison of the interest rates of a few small savings plans:
- 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%
While these plans pay attractive interest rates, they may not outperform SIPs in the long run. Keep in mind, SIP have market risk.
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.)