Invest 5000 Rupees and Earn and Withdraw over 5.9 Crores to 15 Crores, Best SIP Investment: Learn here How to Start SIP Investment and How to become Crorepati
Best SIP Investment: Invest 5000 Rupees and Withdraw over 5.9 Crores to 15 Crores, Learn here How to Start SIP Investment and become Crorepati
Now-a-days, you must have been crossing over a lot of videos in YouTube or other advertisement, where people are suggesting to invest in Mutual Funds and grow your money. Mutual Funds concept is not new, but normally people were very sceptical on investing money in Mutual Funds or Stocks, since many people had lost their money in these. So, a lot of people take this as a gamble and don't put their hard-earned money.
But, this is not the situation anymore. People in every country are getting the knowledge and well informed on these products and not blindly believing when it is specific to investment.
The basic and thumb-rule of investing in mutual funds is to invest for long term and stay invested...
When I say long term, then obviously you cannot/may not invest a lot of money regularly for long term, since you have to take care of a lot of other responsibilities. To ease your burden, there is a process called SIP, using which you can invest regularly, consistently and stay invested for long term for best result. In this article, we will understand How to Start SIP Investment and How to become Crorepati by just investing only 5000 rupees per month.
Table Of Contents:
- What is SIP Investment?
- Types of Interest:
- Simple Interest
- Compound Interest
- Scenario 1
- Scenario 2
- Scenario 3
- Scenario 4
- Scenario 5
- Conclusion
What is SIP Investment?
SIP investment full form is Systematic Investment Plan (SIP). It is an effective investment strategy that allows individuals to invest regularly in mutual funds. SIP offers various benefits, such as disciplined investing, the power of compounding, etc..
If You are looking for to know Best SIP Investment: How to Start SIP Investment, How to Become Rich in India, How to Become Crorepati, How to Invest in Mutual Funds then Click on me..
This article will guide you on how to start SIP investments and explore some of the best SIP investment or best sip mutual fund options available, how to invest in sip, how to invest 5000 rupees per month, where to invest 5000 rupees and best way to invest 5000 rupees.
Let's get started:
Before understanding the scenario, I am assuming that you want to become rich by a small investment and you know the power of compounding concept.
If you are unaware of the Power of Compounding concept, then let me explain it high level.
Types of Interest:
There are two types of interest.
1. Simple Interest
2. Compound Interest
A. Simple Interest:
It is a simple and straightforward interest calculation method based solely on the principal amount. Meaning, It does not take any interest into account of calculation that has been accumulated over previous periods for an investment or loan.
Example: If you invest Rupees 1,00,000 at a simple interest rate of 6% per year for three years, you would earn ₹ 1,18,000 total where ₹ 18,000 is the interest amount. (Rupees 6,000 every year)
Compound Interest:
Compound interest considers both the principal amount and any interest that has accumulated over previous periods to calculate next interest for annually, half-yearly, quarterly, monthly, or even daily periods. In other words, it involves reinvesting the earned interest to generate additional interest. When you have a long-term investments then compound interest can have a significant impact.
Example:
If you invest Rupees 1,00,000 at a compound interest rate of 6% per year for three years and compounding is applicable for yearly period, you would earn ₹ 1,19,102 total where ₹ 19,102 is the interest amount.
If compound interest is calculated quarterly, then you would earn ₹ 1,19,562 total where ₹ 19,562 is the interest amount.
If compound interest is calculated quarterly, then you would earn ₹ 1,19,669 total where ₹ 19,669 is the interest amount.
Hope, you got the difference between compound interest and simple interest and also how compound interest has the potential to accumulate higher interest due to its compounding effect on a long term investment.
Now, let come to our main agenda of the topic and understand the scenario how investing only 5000 rupees a month and earn or withdraw over 5.9 crores in SIP investment:
Scenario 1:
Let's say you have over 5000 rupees which is remaining for saving after all your expenses, insurances and other guaranteed return investments. means you can take risk of investing 5000 rupees in a product which can be volatile in the market, but if you can stay invested for long term, then you will earn a lot.
So, for a safer side, you picked up a Nifty 50 Index Fund - Direct Mutual Fund to invest 5000 rupees every month.
Let me tell you guys, Nifty 50 Index funds are the funds by averaging the value of the stocks of the top 50 best performing companies in India. Meaning these funds are more secure than any other equity funds cause all 50 companies may not go bankrupt at the same time or very soon, right?
For 10 Years:
Now, let's say if you have a target to buy a car after 10 years and you invest 5000 rupees per month, then after 10 years you would have accumulated total ₹11,61,695 (11.6 Lakhs) by considering standard 12% as return estimated percentage.
This includes your ₹5,61,695 as interest amount and ₹6,00,000 as principal amount.
Scenario 2:
For 20 Years:
Let's say you have a child just born and you want to accumulate some amount for him/her for higher studies. In 20 years with same standard 12% as return estimated percentage, your total investment would be: ₹12,00,000 and interest amount would be: ₹37,95,740. So total amount will be: ₹49,95,740 (Around 50 Lakhs)
Now you got the difference how much you got in return.
Scenario 3:
For 30 Years:
Now you have a different goal like you want to build a house after 30 years. Let's say you invest for 30 years and same 12% return, then you will invest total ₹18,00,000 and get return ₹1,58,49,569. Total return including your investment is now: ₹1,76,49,569 (1.76 Crores)
Scenario 4:
For 40 Years:
Now, let's say you have a goal for accumulate enough amount for your retirement for a stress free life. So, your total investment will be ₹24,00,000 where as interest return will be ₹5,70,12,101. So, total return is:₹5,94,12,101 (5.94 Crores)
What? Seriously? This is your expression right now, right?
Yes, you read it correctly. You got over 5.9 crores by just investing 5000 rupees a month.
There are many funds even gives return of 15% to 20% to 25% also, but more risk is associated too.
However, you see the longer the investment gives higher return.
Scenario 5:
Consider 15% as return with same 5000 rupees as investment:
For 10 years, total investment is ₹6,00,000, and interest is ₹7,93,286 and final return is: ₹13,93,286 (13 Lakhs)
For 20 Years, total investment is ₹12,00,000, and interest is ₹63,79,775 and final return is: ₹75,79,775 (75 lakhs)
For 30 Years, total investment is ₹18,00,000, and interest is ₹3,32,49,103 and final return is: ₹3,50,49,103 (3.5 Crores)
For 40 Years, total investment is ₹24,00,000, and interest is ₹15,46,18,777 and final return is: ₹15,70,18,777 (15.7 Crores)
What? What? What?
Yes, this is absolutely correct. You can check yourself in the SIP calculator:
You can check in any SIP calculator available online. Just play around with the calculator and start to invest how much you think is good for yourself.
Conclusion:
It's important to note that mutual funds charge some fees and expenses, such as management fees and operating expenses, etc. All investors should carefully review the fund's objectives, risks and costs before investing and consider their own investment goals and risk tolerance.
Overall, mutual funds provide individuals with a convenient and accessible way to participate in the financial markets and benefit from professional management and diversification. However, like any other investment, it's important to conduct thorough research, understand the risks involved, and seek professional advice if needed before investing in mutual funds.
Begin your SIP investment journey with confidence. Remember to choose the right mutual fund, set realistic financial goals, and maintain a disciplined approach to reap the benefits of SIP investing.
FAQs (Frequently Asked Questions)
Can I start with a lower monthly investment amount in SIP?
Yes, SIP allows investors to start with lower monthly investment amounts, depending on the specific mutual fund scheme.
Are there any charges associated with SIP?
Yes, there may be expenses such as an expense ratio and exit load associated with SIP. It is important to review the scheme's offer document for complete information.
Can I increase or decrease my monthly investment amount in SIP?
Yes, investors can modify their monthly investment amount by submitting a request to Mutual Fund or accessing their online SIP account.
What is the minimum investment duration for SIP?
The minimum investment duration for SIP can vary depending on the specific mutual fund scheme. It is advisable to review the scheme's details for accurate information.
Can I withdraw my SIP investment before the completion of the chosen duration?
Yes, investors have the flexibility to withdraw their SIP investment before the completion of the chosen duration. However, certain mutual fund schemes may have exit loads or charges for premature withdrawals.
What is the minimum investment amount for SIP Mutual Funds?
The minimum investment amount for SIP is ₹500 per month.
Can I change my SIP investment amount later?
Yes, you can modify your SIP investment amount by submitting a request to Mutual Fund.
Can I pause or stop my SIP?
Yes, you have the flexibility to pause or stop your SIP by contacting Mutual Fund or accessing your online SIP account.
Are SIP Mutual Funds investments safe?
SIP investments are subject to market risks. However, do the research carefully about the Mutual Fund having strong reputation and adheres to regulatory guidelines, ensuring transparency, good returns and investor protection.
Can I switch between different mutual fund schemes through SIP?
Yes, you can switch between different mutual fund schemes through the Systematic Transfer Plan (STP) facility offered by Mutual Fund.
Is Direct or Regular Mutual Funds better?
My recommendation will be for you to invest in Direct growth mutual funds to save more money without paying for extra expenses and commissions.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.
Happy Investing !!! 🙏🙏🙏
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