Making money is easy, but growing it through smart investments is an art. Many become affluent not because of high salaries but because of strategic investments. You don't need millions in salary to become wealthy; just patience and an understanding of smart investments. Imagine if I told you that by investing just ₹10,000 a month through SIP, you could amass as much as ₹250 million. Many would find this hard to believe, yet it's achievable with consistent SIP investment.
For those aged between 25 to 30 years working, this is a golden opportunity. Even modest contributions can become a substantial fund over time. SIP isn't some magic trick; it’s a game of 'time and patience'. Those who start investing ₹10,000 in SIP at 25 or 30 can have a multimillion fund by their 60th birthday. Simply put, a small SIP (Systematic Investment Plan) of just ₹10,000 can transform your life.
If you invest ₹10,000 monthly in a good mutual fund via SIP, over 30 years, you'd have invested a total of ₹3.6 million (₹10,000 × 12 months × 30 years).
What returns can you expect?
If the annual return is 10%, your investment grows to approximately ₹22.8 million, yielding a profit of ₹19.2 million from a ₹3.6 million investment. This return far surpasses any fixed deposit or savings account.
With an annual return of 12%, your SIP’s value after 30 years could reach about ₹35.3 million, translating to a profit of ₹31.7 million on a total investment of ₹3.6 million—more than tenfold growth. This rate is the average for today’s well-performing equity mutual funds.
Source: aajtak
If the annual return is 15%
In the current scenario, a 15% return is quite high. With a monthly SIP of ₹10,000, you can amass over ₹93.1 million in 30 years—this showcases the true strength of 'long-term wealth creation'.
Imagine a 20% return
Picture receiving a 20% return on your SIP investment: your ₹10,000 monthly investment could swell to ₹267 million after 30 years. This illustrates the 'Power of Compounding'.
Even if someone receives ₹260 million at age 60 and withdraws ₹1 million monthly (or ₹12 million annually), the core amount doesn't deplete but continues to grow, allowing for ongoing withdrawals of ₹1 million monthly.
(Note: Always consult a financial advisor before investing in stock markets or mutual funds.)
