By investing in mutual fund SIP, you can collect funds up to crores but for this, you have to invest regularly for a long time. Today we will tell you how it is beneficial to invest in small SIPs for long term or big SIP for short term.

Every person wants to earn profit by investing his money in a good scheme. Most people resort to bank FD to invest money but for some time mutual fund SIP is also becoming a very popular option for investing among the people. By investing in mutual fund SIP, you can earn very good profit but for this you need to know about some things.

Investment in Mutual Fund SIP

By investing in mutual fund SIP, you can collect funds up to crores but for this you have to invest regularly for a long time. Many times people invest in mutual funds for a short time with big SIP to earn quick and more profit. Today we will tell you which way of investing is beneficial, small SIP for a long time or big SIP for a short time.

Small SIP for a long time

If you invest Rs 5000 every month in a mutual fund through SIP and you do it for a long time like for 30 years. By investing Rs 5000 every month for 30 years, you will invest a total of Rs 18 lakh. If you get a return of 12 percent, then you will get a total of Rs 1,54,04,866 after 30 years. In this, only Rs 1,36,04,866 will be your profit.

Big SIP for a short time

If you invest Rs 15000 every month in a mutual fund through SIP and you do it for a short time like for 10 years. By investing Rs 15000 every month for 10 years, you will invest a total of Rs 18 lakh. If you get a return of 12 percent, then you will get a total of Rs 33,60,538 after 10 years. Out of this, only Rs 15,60,538 will be your profit.

From this calculation, you can see that Rs 18 lakh has been invested in both the places but investing for a long time will give more profit because you will get the benefit of compounding in it.