SIP investment: You heard that small savings can fulfil big dreams. If you do an SIP of ₹4,000 every month, you can create a fund of more than ₹60 lakh in the coming years. This is nothing less than magic, but its basis is compounding and disciplined investing. Let’s start this interesting journey and determine how much time this goal can be achieved.
What Is SIP and How Does It Work?
Systematic Investment Plan, or SIP, is a method in which you invest a fixed amount in mutual funds monthly. It is completely automatic—once the process starts, money is deducted from your account monthly on the fixed date and invested.
Why Should You Start Investing Early?
The sooner you start investing, the more benefits you will get. For example:
Mukesh started a SIP of ₹1,000 at 20 and invested for 40 years.
Final fund: ₹1.18 crore
Suresh started investing at the age of 30 and invested for 30 years.
Final fund: ₹35 lakh
Rahul got 3 times more returns by starting investing just 10 years ago!
How Much Can You Get From A SIP Of ₹4,000? (At 12% Expected Return)
Target: ₹60 lakh fund
Monthly investment: ₹4,000
Tenure: Around 24 years
Total investment: ₹11,52,000
Interest income: ₹48,81,715
Last fund: ₹60,33,715
What Will You Get If You Invest For 10 Or 20 Years?
10 years
- Investment: ₹4,80,000
- Return: ₹4,16,144
- Total Funds: ₹8,96,144
20 years
- Investment: ₹9,60,000
- Return: ₹27,19,429
- Total Funds: ₹36,79,429
Saving ₹4,000 every month may not seem like a big deal, but if channelled in the right direction, this small habit can become a strong financial foundation of ₹60 lakhs. The most important things in this investment journey are an early start, regularity, and patience.
