SIP: The habit of saving and investing wisely can easily fulfill many big goals of life. In such a situation, if you are 26 years old now and want to have a fund of Rs 2 crore by the age of 50, then from now on, you need a smart financial plan.

Investing in mutual funds through a SIP plan is the easiest and most popular way. But the biggest question is how many SIPs will have to be done every month to achieve the target of Rs 2 crore at the age of 50? This can be easily understood through a simple calculation.

Here is the calculation-

But first of all, let us tell you that there is no limit on the return on investment in mutual funds. Still, assuming an average return of 12 percent, we can understand the return through calculation. If you are 26 years old today, then you have to invest a fixed amount in SIP for the next 24 years (i.e., 288 months).

If you invest Rs 12,000 every month in a SIP (Systematic Investment Plan) and assume a return of 12 percent per annum (which is possible in good equity mutual funds), then, according to Angel One's SIP calculation, after 24 years, you will have a fund of about Rs 2,00,72,246. This means that if you start a SIP of Rs 12,000 per month from now, then by the age of 50, you can create a fund of more than ₹ 2 crore.

What if you delay...?

If you start SIP after 5 years, i.e., at the age of 31, then to get the same ₹ 2 crore, you will have to invest about ₹ 22,900 per month. That is, the earlier the time, the less the investment. Therefore, it is wise to start investing in mutual funds through SIP as soon as possible. You can start SIP with a trusted mutual fund company, platform, or bank. You can focus on equity mutual funds for the long term.

Benefits of investing in SIP-
SIP helps you take advantage of market fluctuations. When the market falls, you buy more units, and when the market rises, you buy fewer. This makes you a disciplined investor because investing a fixed amount every month makes it a regular habit.

SIP is an easy way of investing. All you have to do is fill a nomination form and give a cheque, which the mutual fund will deposit on the date specified by you. After this, the units will be deposited in your account and you will get a message about it.