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Best SIP For Investment: 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 Rs 2000 every month
Systematic Investment Plan (SIP) is a way in which you invest a fixed amount regularly. This method protects you from market fluctuations and gives you the opportunity to take advantage of the benefits of compounding. Suppose you start a SIP of Rs 2,000 at the age of 25 and continue it for 30 years, then your total investment in this period will be Rs 7,200,000. This is a 30 year investment. That means annual investment of Rs 24000.
Now if you continue with 12 percent annual return, the value of your investment will be around Rs 1.05 crore after 30 years. Whereas if the return increases to 15 percent, then your total wealth can reach Rs 2.63 crore.
Benefits of mutual funds
You get better returns by investing in mutual funds for long term. In this, your money increases with time and you get more benefits from it. Investing small amounts regularly through SIP reduces risk.
Which are good mutual funds?
Talking about good mutual funds, HDFC Top 100 Fund and SBI Consumption Opportunities Fund have given excellent returns in the last years. If someone had invested Rs 2,000 every month for 25 years in HDFC Top 100 Fund, his net worth 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 today would have been around Rs 1.26 crore.
Disclaimer: (The information provided here is being provided for information only. It is important to note here that investment in the market is subject to market risks. Always seek expert advice before investing money as an investor. ABPLive.com does not advise anyone It is never advisable to invest money here.)
