As the dawn of a new year emerges, countless individuals worldwide are crafting resolutions, hoping to usher in positive changes. For some, the aspiration is to shed those extra pounds, while others aspire to explore new horizons, both literally and figuratively.
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Yet, amidst these diverse resolutions, a significant faction aims to bolster their financial stature.
Mutual Fund investments
The intriguing proposition here is that by committing to a modest investment of just Rs 2024 monthly in mutual funds via a systematic investment plan (SIP), one can potentially accumulate a staggering sum of 1 crore rupees. Delving deeper into the concept of SIP, we explore its intricacies and potential benefits.
Systematic Investment Plan (SIP)
A beacon in the world of investments, SIP or Systematic Investment Plan stands out as a method wherein investors can channel a predetermined sum into a chosen mutual fund at regular intervals. This flexible nature makes SIP particularly appealing for individuals hesitant about direct or even indirect stock market investments. What further amplifies SIP’s allure is its accessibility; one can commence their investment journey with as little as Rs 500 each month. As individuals witness an uptick in their earnings, they have the autonomy to amplify their investment quantum, aligning it with their evolving financial aspirations.
The magic of SIP lies in the power of compounding. By consistently channeling funds into investments over extended durations, the accrued returns, when reinvested, can lead to exponential growth. Tailoring the frequency of SIPs – be it weekly, monthly, or quarterly – and adjusting the investment magnitude in sync with one’s financial blueprint ensures a customized and efficient wealth accumulation strategy.
How to Find 1 Crore
By adhering to a consistent SIP deposit of Rs 2024 monthly and capitalizing on a 12% annual return, the projected corpus after 24 years stands at Rs.33,85,519. However, embracing a more dynamic approach with the Step-Up SIP, where the investment escalates by 13% annually and yet yields a 12% return, could catapult the final tally beyond the 1 crore mark.
Under this strategy, the total outlay over 24 years remains at Rs 33,23,363, but the capital appreciation soars to Rs 66,94,663, culminating in a monumental return of Rs 1,00,18,026.
What is Step-Up SIP?
The essence of the SIP step-up strategy lies in its adaptive nature. As an investor’s income witnesses an annual surge, the SIP contribution escalates proportionately. Contrary to perceptions, initiating an SIP with a daily deposit of Rs 67 or a monthly commitment of Rs 2024 isn’t an exorbitant endeavor, especially in contemporary times.
With foresight, meticulous planning, and unwavering commitment, such seemingly modest investments can metamorphose into substantial wealth reservoirs.
To Earn 10 Crore
Visualizing even loftier financial milestones, consider an SIP commitment of Rs 10,000 monthly. In a scenario where this sum remains static, accumulating savings worth Rs 10 crore would necessitate a duration of approximately 38 years and 7 months, given a consistent 12% annual return. However, by introducing an annual increment of 10% to the SIP amount, the horizon dramatically shortens to a tad under 31 years, all while amassing a commendable 10 crore rupees.