New Delhi: Many shy away from the stock market due to its unpredictable nature. If you’re keen on stock market gains but wish to avoid the roller coaster, consider investing through a Systematic Investment Plan (SIP) in mutual funds. SIP allows you to invest a fixed amount regularly, navigating market fluctuations with a disciplined approach.
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Systematic Investment Plan (SIP)
Systematic Investment Plan (SIP) is not just an investment tool; it’s a way to build a reliable income for your future. By committing to invest a certain amount every month, you can cultivate a habit that could secure your financial future. Even starting with Rs 3000 a month at the age of 25 can make a substantial impact.
Compound Growth
The power of compounding works wonders over time. If you start investing Rs 3,000 every month at the age of 25, you’d have invested Rs 36,000 in the first year, but by the time you approach 35 years, the cumulative investment would be Rs 1.89 lakh. The magic happens when you continue this disciplined approach for 35 years.
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How Rs 3,000 Monthly SIP Transforms Into A Whopping Rs 1.5 Lakh Per Month?
Assuming an average annual return of 12 percent, your SIP investment of Rs 1.89 lakh in the first year could grow to a staggering Rs 2.99 crores by the end of 35 years.
Yes, you read it right – nearly three crores! SIP transforms your consistent monthly investment into a substantial wealth-building strategy.
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If you choose to invest this substantial amount of approximately three crores in your retirement fund, even at a modest Fixed Deposit rate of 6 percent, it could provide you with a monthly income of around Rs 1.5 lakh.
