Systematic Investment Plan (SIP), a mutual fund scheme, allows you to build a significant amount without taking on substantial risk. Investing in SIP can be immensely beneficial for securing children's future.
In today's fast-paced world, investing your money has become the most crucial aspect for growth and stability. Most middle-class families with limited funds, face concerns such as children's education, daughters' marriages, home construction, savings for retirement, and more.
If you find yourself among those troubled by these issues and aspire to build substantial capital, systematic planning is essential. Without it, your efforts may not yield effective results. Today, let’s learn about some investment strategies that can help you build Rs 50 lakh and more for your future.
SIP
Systematic Investment Plan (SIP), a mutual fund scheme, allows you to build a significant amount without taking on substantial risk. Investing in SIP can be immensely beneficial for securing children's future.
To build a fund of Rs 50 lakh or more, simply start investing Rs 5000 monthly in SIP. By periodically increasing this amount by 5 to 10 percent based on your financial growth, you can potentially build a substantial fund exceeding Rs 50 lakh within a few years.
How to do it
If you begin investing Rs 5000 in SIP today and increase it by 5% each year, your investment amount will grow annually. For example, in the first year, your investment will total Rs 60,000.
In the second year, with an additional 5% top-up, your monthly SIP contribution will increase to Rs 5250 instead of Rs 5000. Consequently, your total investment for the second year will amount to Rs 1.23 lakh. By continuing this pattern annually, your investment amount will progressively increase.
Regular investment
When investing in SIPs, you will need to stay consistent with it. For more benefits, commit to SIP investments for at least 18 years. By depositing Rs 5000 monthly with a 5% top-up, the total amount accumulated will be Rs 16.87 lakh over this period.
With a return rate of 12 percent on your deposited amount, the minimum fund you will have is Rs 51.45 lakh, after a period of 18 years. If the return rate is higher, you can get even more financial benefits.
Last Updated Jun 24, 2024, 2:54 PM IST