What is mutual funds and how to invest?
Mutual funds are a type of investment scheme in which investors' money is collected and then invested in different types of stocks, bonds, or other securities. Mutual funds are operated by professional fund managers and they decide in which companies the investors' money is to be invested so that investors can get maximum benefit. The return received in mutual funds depends on the performance of the fund in which your money is invested. This return can change with the fluctuations of the market.
How to invest in mutual funds:
Investing in mutual funds can be a smart choice if your goal is to accumulate Rs 1 crore in retirement money over a 30-year period. In the past, mutual funds have produced yearly returns of 12% on average. You must begin a Systematic Investment Plan (SIP) in order to accomplish this. How will the investment increase?
Monthly investment: Rs 3,000
Expected annual return: 12%
Total investment in 30 years: Rs 10,80,000
Total funds on maturity: Rs 1,05,89,741
Total interest earned: Rs 95,09,741
If you invest Rs 3,000 every month in a mutual fund scheme that gives a return of 12 percent, you can accumulate a fund of more than Rs 1 crore, which will help you achieve your retirement goal comfortably.
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