Everyone often invests in traditional schemes like FD, RD, and PPF. Safety is guaranteed in these schemes, but it is a bit difficult to become a millionaire. So if you are dreaming of becoming a millionaire, then a Systematic Investment Plan (SIP) can prove to be a real treasure for you. So you will know all the information about SIP here.

Hey! Are you also one of those people who invest money in FD, RD, or PPF for years and think that now their future is safe? You will be safe by investing, but can you become rich with it? Is FD, RD or PPF able to beat this inflation? So the answer will be no. So let us know about a way which will help you in creating a strong fund. We are talking about SIP (Systematic Investment Plan), in which a strong fund can be created with good returns.

In today's inflation, everyone needs good returns along with safe investment, so that the future can be safe. You have to pay tax on the interest of FD/RD, which reduces the return further. Whereas in schemes like PPF, the money remains stuck for a long time.

In SIP i.e. Systemic Investment Plan, you choose a fixed amount every month according to your convenience, which gets invested automatically. You can start with ₹500 or even ₹1000. If you get a return of 12 to 15 percent in this, then you can easily become a millionaire in the future.

In SIP, money grows with the magic of compounding. Compounding means - you earn profit on profit. So imagine, you invested ₹100, got 10% return, then it became ₹110. Next time you will get 10% on ₹110 (₹11), then it will become ₹121. That is, this small beginning can become like a mountain in the long run.

So now we understand the whole game of this through calculation. Suppose you do SIP of ₹5000 every month and you get an average return of 15% annually. Let us assume that you will invest in 25 years. In this, the investment amount will be ₹15,00,000. In which ₹1,22,82,804 will be returned. According to this, the total fund will be ₹1,37,82,804. This calculation is just for illustration and 15% return is not guaranteed as market risks are involved.

SIP is a long-term horse as it has the potential to give much higher returns than FD/RD/PPF due to its linkage to equity market.

SIP can easily beat inflation in the long run. You can increase/decrease investment anytime, or even stop it (with certain conditions). There is no long fixed lock-in (except ELSS).

SIP can really help you get rich. If invested in the right way at the right time. However, do get all the information before investing.

Before getting so excited, wait, because SIP invests in the stock market through mutual funds, which involves risk. There is no fixed guarantee of returns, so there can be losses.

SIP is a long-term game (invest for at least 10, 15, 20+ years). SIP is not a scheme to get rich overnight. But keep in mind that when the market falls, do not stop SIP, rather continue it (this is the benefit of Rupee Cost Averaging).

SIP has its own benefits, it creates funds by taking a little risk. But it is not wrong to invest in FD/RD/PPF, because it has its own good benefits. It can be chosen for safe and secure investment. (Note- Before investing, get all the information about the fund and returns from SIP calculation)