₹1,000 SIP to ₹10 Lakh: Here’s How Long It Will Take
How long will it take to build a ₹10 lakh fund with a ₹1000 SIP? See the calculation: Mutual fund SIPs (Systematic Investment Plans) have become quite popular among investors. Through SIPs, you can invest money in installments. Today, we will find out how long it will take to build a fund of ₹10 lakh by investing ₹1000 every month through an SIP. Let’s understand this with the help of calculations.
Calculation:
Investment amount – ₹1000 per month
Investment return – 12 percent
If you invest ₹1000 every month through an SIP and aim to build a fund of ₹10 lakh, then, assuming a 12 percent return, you will need to invest for 20 to 21 years. In 20 years, your fund could reach ₹9.99 lakh. If you continue investing for 21 years, your fund could reach ₹11,39,000. However, this completely depends on the fund you choose and the returns you receive.
The returns you get from a mutual fund can vary, as they depend on the stock market.
Regarding the principal amount, with a ₹1000 SIP (Systematic Investment Plan), you will accumulate ₹2,52,000 in 21 years. Similarly, in 20 years, your principal amount will be ₹2,40,000.
What is a Hybrid Fund?
Hybrid mutual funds are considered safer because they include both equity and debt investments. Having two different types of investment options provides balance. However, because it includes debt, you will likely see only moderate or average returns.
