SIP is a very easy way of mutual fund investment. In this, a fixed amount is debited from your account every month. Since the investor gets better returns with less risk in SIP, it is gradually becoming popular among investors in India. According to the data released by the Association of Mutual Funds in india (AMFI) on Thursday, monthly Systematic Investment Plans (SIPs) crossed the figure of Rs 26,000 crore for the first time in December. This reflects the growing interest of small investors in long term investment in mutual funds.
Investors' contribution in SIP in december was this much
In december 2024, the contribution of investors in SIP was Rs 26,459 crore, which was Rs 25,320 crore in november 2024. In addition, mutual fund (MF) folios grew to 22.50 crore in december from 22.02 crore in the previous month. Despite some geopolitical conditions challenging equity markets globally, monthly SIP contributions grew by 50 per cent year-on-year in december 2024. Here we will know how long it will take you to achieve the financial goal of Rs 1 crore with SIP contributions of Rs 1,000, Rs 2,000, Rs 3,000 and Rs 5,000 per month. This calculation is based on 12 per cent annual return and 10 per cent increase in SIP amount every year.
10% increase annually in SIP of Rs 1,000 per month
If you invest Rs 1,000 every month with a 10% step-up annually and expect a return of up to 12% every year, you can accumulate around Rs 1.02 crore in 31 years.
Monthly SIP of Rs 2,000
Similarly, with a SIP of Rs 2,000 per month with a 10% step-up annually, you will accumulate up to Rs 1.15 crore in 27 years at a return of 12% every year.
SIP of Rs 3,000 per month
A SIP of Rs 3,000 per month, growing at a rate of 10% annually, will become Rs 1.10 crore in 24 years at a return of 12% annually. Your total invested amount in this term will be Rs 31.86 lakh and return will be Rs 78.61 lakh.
click and follow Indiaherald WhatsApp channel