Investing in Mutual Funds can be a smart financial decision, especially if you do it regularly. If you invest only Rs 2,000 every month, you can fulfill your dream of becoming a millionaire. Let us know how this can happen and what needs to be done for this.
SIP of 2000 every month
Systematic Investment Plan (SIP) is a method in which you regularly invest a fixed amount. This method protects you from market fluctuations and gives you the opportunity to take advantage of the benefit of compounding. Suppose you start a SIP of Rs 2,000 at the age of 25 and continue it continuously for 30 years, then your total investment in this time will be Rs 7,200,000. This is an investment of 30 years. That is, an annual investment of Rs 24000. Now if you take a 12 percent annual return, then the value of your investment will be around Rs 1.05 crore after 30 years. On the other hand, if the return increases to 15 percent, then your total wealth can reach Rs 2.63 crore.
Benefits of Mutual Funds
Investing in mutual funds for the long term gives you better returns. In this, your money grows over time and you get more benefits from it. Investing small amounts regularly through SIP reduces the risk.
Which are the good mutual funds?
Talking about good mutual funds, hdfc Top 100 Fund and sbi Consumption Opportunities Fund have given great returns in the past years. If someone had invested Rs 2,000 every month for 25 years in hdfc Top 100 Fund, then his total wealth would have been around Rs 1.03 crore. At the same time, if someone had invested in sbi Consumption Opportunities Fund during the same period, his total investment would have been around Rs 1.26 crore today.
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