Last Update: February 28, 2023, 12:30 IST
You can also save Rs 10 per day for one month and earn Rs 300 after one month.
Nowadays most people are investing Rs 300 per month for 35 years with 18% interest.
Many investment schemes are becoming popular in the market as the youth with income are becoming more financially aware. Systematic Investment Strategy (SIP) is one of them. SIP is a type of investment vehicle that mutual fund companies offer to investors. People invest in Mutual Fund SIPs in small amounts over time instead of making large payments at one go. Young workers find it very attractive as it requires only small monthly or quarterly investments with a large maturity amount.
Due to mutual fund schemes people can earn good returns. In the case of compound interest, a person receives interest on both his initial investment and the interest earned over time. According to financial experts, those who are serious about investing should start their investment journey with SIP. Finding the best mutual fund plan that fits their investment budget and the returns they want should be the second step.
Nowadays people are investing Rs 300 per month for 35 years with 18% interest. After maturity, the accrued amount remains around Rs 1.1 crore. You can also save Rs 10 per day for one month and earn Rs 300 after one month.
While building a corpus over time, SIPs are essential. Many people increase their investment monthly through SIP. Due to the long term nature of SIP there is a possibility of experiencing different stock market phases again and again. The secret, though, is maintaining the same discipline even in turbulent times.
Many investors fear that the market may fall further and may stop SIPs during the uncertain period. Yet, such a response comes at a cost. The total return is affected. SIPs growing at a steady rate keep yielding better results as compared to SIPs that are paused and restarted. From a goal-based investing perspective, it’s always good to stay on track. When it comes to investing through mutual funds, SIP is a strong and reliable instrument, especially for individuals who are looking to gradually expand their portfolio to achieve their goals.
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