Power of Rs 15,000 SIP: How can you generate more than Rs 70,00,000 corpus with just Rs 15,000 monthly investment?

What is SIP?

Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds. Investors contribute a fixed amount at regular intervals, benefiting from long-term market growth.

How does SIP work?

• A fixed amount is auto-debited from your bank account.

• Units are allocated based on the mutual fund's Net Asset Value (NAV).

• Over time, reinvestments compound, increasing your returns.

Lump Sum vs SIP

• Lump Sum: A one-time investment of Rs 1 lakh.

• SIP: Invest Rs 500 (or any amount) monthly, ensuring gradual wealth accumulation and reduced market timing risk.

When should you start investing in SIP?

• The earlier, the better to maximise compounding benefits.

• Choose a scheme that aligns with your long-term financial goals.

Types of SIP

• Top-up SIP: Increase your investment periodically as income grows.
• Flexible SIP: Adjust investment amounts based on cash flow.
• Perpetual SIP: Continue investing without a fixed end date.

Key Benefits of SIP

 

• Disciplined investing: No need for active market monitoring.
• Rupee Cost Averaging: Buy more units when prices are low and fewer when high, reducing overall cost per unit.

How does rupee cost averaging work?

• Market fluctuations work in your favor.
• Your average cost per unit decreases over time.

The Power of Compounding

• Reinvested earnings generate additional returns.
• Long-term investments see exponential growth.

Expected returns on Rs 15,000 SIP

• Invested Amount: Rs 27,00,000
• Estimated Returns: Rs 44,38,971
• Total Corpus: Rs 71,38,971

Why SIP is a smart choice?

• Ideal for beginners and experienced investors.
• Works in all market conditions.
• Helps achieve long-term financial goals effortlessly.
• Start your SIP today and secure your financial future!