Mutual Fund SIP: Investing in future goals such as children's education, marriage, and building a house is very important these days. The earlier you begin investing, the greater the benefits you will receive. There are various investment options available today, and if you are looking for a reliable choice, Mutual Fund SIP can be an excellent option. In this article, we will explore how much will you get after 20 years if you deposit Rs 5000 every month in SIP.
The longer the SIP, the bigger the profit
You get the full benefit of SIP only when you start it at a early age and keep maintaining it for as long as possible. The return on SIP depends on several key factors, including the amount you invest each month, the duration of your investment, and the rate of return you earn annually.
How much money will you get from a SIP of Rs 5000 after 20 years?
If you invest Rs 5000 per month in an SIP with an average annual return of 12 per cent, you could accumulate around Rs 49.95 lakh in 20 years. This amount includes your principal investment of Rs 12 lakh and returns of approximately Rs 37.95 lakh. On the other hand, if the average annual return increases to 15 per cent, your total corpus after 20 years could reach Rs 75.79 lakh, with Rs 12 lakh as your investment and Rs 63.79 lakh as the return.
However, before starting an SIP, it is important to consider a few things. SIPs carry stock market risks, and the returns generated from them are subject to capital gains tax.
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