Mutual Fund SIP: There are many investment tools available to make big money in the long term. But mutual fund SIP is a different matter. AMFI data is proof that mutual fund SIP is very helpful in building a large corpus in the long run. Now whether you want to save money for your children's education or for your children's marriage, mutual fund SIP can play an important role in fulfilling all these needs of yours. Here we will know how much time will it take to accumulate Rs 6 crore from a SIP of Rs 10,000 and what strategy should be adopted for investment?
Step-up of 9 percent will have to be done every year
With the help of mutual fund SIP, a corpus of Rs 6 crore can be created with a monthly investment of Rs 10,000. However, for this you will have to use the step-up formula. If you start SIP with Rs 10,000 and step-up your SIP by 9 percent every year, then you can achieve your goal.
The target will be achieved in 28 years with an estimated return of 12 percent.
If you start your SIP with Rs 10,000 and make a step-up of 9 per cent every year and get an expected average return of 12 per cent per annum, then you can achieve your goal in 28 years. With this investment strategy, your total investment in 28 years will be Rs 1,35,56,186. You will get an estimated return of around Rs 4,60,83,511 on this investment. Now if these two amounts are combined, your total corpus will be Rs 5.96 crore.
How much time will it take with a return of 15 percent
With this investment strategy, if you get an estimated return of 15 percent annually, then you can create a fund of Rs 6.05 crore in 25 years. Starting SIP from Rs 10,000 with a step-up of 9 per cent every year, your total investment in 25 years will be Rs 1.02 crore. You will get an estimated return of around Rs 5.04 crore on this investment and by combining these two amounts your total corpus will be Rs 6.05 crore.
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