SIP: Investing wisely is key to securing your financial future, and one of the most effective ways to do so is through Systematic Investment Plans (SIPs). SIPs allow you to invest small amounts regularly, enabling you to build substantial wealth over time. In this article, we’ll delve into the details of SIP returns over different durations and compare them with other popular investment options for Indian citizens.
Understanding SIP Returns Over Different Durations
Here’s a breakdown of the SIP returns over various durations, assuming an expected annual return of 17%:
| Duration | SIP Amount (₹) | Future Value (₹) |
|---|---|---|
| 5 years | 9500 | 9 Lakhs |
| 8 years | 9500 | 19.4 Lakhs |
| 10 years | 9500 | 30 Lakhs |
| 12 years | 9500 | 44.8 Lakhs |
| 15 years | 9500 | 78.8 Lakhs |
| 18 years | 9500 | 1.4 Crores |
| 20 years | 9500 | 1.9 Crores |
| 22 years | 9500 | 2.7 Crores |
| 25 years | 9500 | 4.6 Crores |
In this example, with a monthly investment of Rs. 9500 and an assumed annual return of 17%, you can accumulate a corpus of Rs. 4.6 crore in 25 years. The table showcases the power of compounding as the future value grows significantly over time.
Wealth Gain through SIP
Let’s take a closer look at the wealth gain through SIP:
- Expected Amount: Rs. 45,596,882 (4.6 Crores)
- Amount Invested: Rs. 2,850,000 (28.5 Lakhs)
- Wealth Gain: Rs. 42,746,882 (4.3 Crores)
This showcases the remarkable potential of SIPs in accumulating significant wealth over the long term.
Comparing SIP with Other Investment Options
| Investment Option | Interest Rate (%) |
|---|---|
| Small Savings Scheme | |
| 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 small savings schemes offer stability and security, their returns are comparatively lower than SIPs. SIPs, on the other hand, provide the potential for higher returns over the long term, making them a preferred choice for wealth creation.
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.)
