How much will you get in 20 years if you do a SIP in the name of your newborn child? - Do you know how much interest only?

If you invest a small amount in SIP in the child's name as soon as the child is born, as the child grows, the investment will grow manifold. When thinking of investing in the stock market, many people are not aware of the risks involved. There are times when those who invested in it become zero at some point. But SIP is not like that. So, when having children, it is very important to plan for their future.

Higher education and marriage of children in the developing world require huge sums of money. At that time, it was not possible to raise the entire amount immediately. So, if you can deposit a small amount with the birth of the child, then when the child grows up, you will have a larger amount at hand. For this one can invest a monthly amount in a mutual fund SIP plan. If you do a SIP of Rs 2,000 per month after the birth of a child, you can calculate how much you will get in 20 years using the SIP calculator. If you invest Rs 2,000 per month in a mutual fund SIP, you will accumulate around Rs 21 lakh in 20 years at 12% interest per annum. 16 lakh rupees will be available as interest only.

If one grows this investment at the rate of 10% per annum, he will have Rs 39,77,743 at maturity. Out of which only interest will be Rs.26,03,143. Investors in SIP have to keep increasing a certain amount every year. Through this, the amount that we can get will also increase.

That means if you invest Rs 2,000 per month in a mutual fund SIP after the birth of a child, you will get Rs 21 lakh in 20 years. If one invests a lot of money in a mutual fund SIP and runs the fund for a long period of time, the amount will continue to grow. Thus, there is no need to worry about the child's higher education and marriage.