New Delhi: Mutual funds offer Systematic Investment Plan (SIP) as an investment method for saving money at regular intervals, typically on a monthly basis. With SIPs starting for as low as Rs 100, mutual fund schemes become accessible to a broader range of investors. This approach allows investors to benefit from rupee cost averaging, where regular investments over time help reduce the average cost per unit.
The introduction of the Rs 100 SIP has democratised mutual fund investments, extending their reach to rural areas and enabling even daily wage earners to participate in India’s equity markets. This initiative aims to make investing more inclusive and convenient for small investors across the country. With a monthly investment of Rs 2,000, you can create a personal fund worth crores of rupees. Here’s how you can add a big fund with Rs 2,000 per month.
Monthly SIP investment of Rs 2,000
For this, you will have to invest Rs 2,000 every month in an SIP i.e. Systematic Investment Plan. Investment is made in mutual funds through SIP. There is a huge benefit of compounding in long-term SIP. You just have to keep this investment disciplined and keep investing for at least 33 years to become a crorepati
How to become a crorepati?
If you invest Rs 2,000 per month at an expected annual rate of return of 12 per cent for 33 years, your total investment would amount to Rs 7.92 lakh.
You will likely earn an interest of Rs 93,95,996.
The future value of your investment is projected to be Rs 1.01 crore.
It’s important to note that past performance may not predict future returns, and mutual funds do not guarantee fixed returns. Hence your maturity amount might vary on the basis of returns received over the years.
Types of Mutual Funds
Mutual funds are categorized primarily into:
Equity MFs: The MFs allocate at least 65 per cent of their assets to equity and equity-related instruments, aiming for higher returns by leveraging the growth potential of these assets. However, their value can fluctuate due to market conditions.
Debt MFs: mutual funds invest in fixed-income instruments such as bonds, government securities, and money market instruments. Debt funds are favoured by conservative investors or those nearing financial goals seeking predictable income.
Hybrid MFs: Hybrid mutual funds combine investments in both equity and debt instruments to balance risk and reward. These funds are designed to offer growth potential from equities and stability from debt.
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(Disclaimer: This article is only meant to provide information. News9live does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
SIP Calculator: You can start investing in mutual funds with as low as Rs 100 via SIP. With a monthly investment of Rs 2,000, you can create a fund worth crores. Here’s how. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
