How ₹2,026 a Month Quietly Becomes ₹43,58,153
If you invest ₹2026 every month for 26 years, you will have ₹43,58,153 at maturity, Know details: As the saying goes, money makes money. While there are many ways to achieve this, if you want to build substantial wealth in the future by investing a small amount, you can achieve your goal through SIPs. SIP, or Systematic Investment Plan, is an easy and disciplined way to invest in mutual funds, where you invest a fixed amount every month.
How does SIP work?
SIP works in much the same way as regular mutual fund investments. The only difference is that SIP automates the entire process, eliminating the need for manual investments each time. When you start an SIP, a fixed amount is automatically debited from your bank account on your preferred date.
With each SIP payment, you are allotted units of the mutual fund based on the prevailing NAV (Net Asset Value) on that day. This automated process ensures investment discipline and allows you to fully benefit from compounding over the long term.
Investment through SIP will yield ₹43,58,153:
If you are young and want to start investing for the future, the 77th Republic Day is the perfect time. Based on a 12 percent return, if you start investing ₹2026 every month for a target of 26 years, you will have a total fund of ₹43,58,153 at maturity in the 26th year. According to the calculation, you will invest a total of ₹6,32,112 over 26 years, while you will receive ₹37,26,041 as returns. This means you will receive returns many times greater than the invested amount.
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