Nowadays, everyone wants a secure future and to avoid financial problems after retirement or in case of an emergency. However, the problem is that many people rely solely on savings, while savings alone do not achieve major goals. On the other hand, investing in mutual funds, and especially Systematic Investment Plans (SIPs), is a method that can turn small investments into substantial sums over the long term.

SIPs involve investing a fixed amount every month. Its biggest advantage is that any individual can start with a small amount according to their income. In fact, this method is especially convenient for employed individuals and those with regular incomes.

Why is SIP easy and beneficial?

While there are many types of investment schemes in the market, the unique feature of SIPs is that they can balance risk over the long term. SIPs average out market fluctuations, a process known as Rupee Cost Averaging. This means that when the market is up, the value of your units will increase, and when the market is down, you will receive more units.

Furthermore, SIP promotes disciplined investing. People often hesitate to deposit a lump sum, but SIP gradually increases your fund by investing small amounts every month.

How can you make ₹4.5 million from ₹150 a day?
Now the real question is—if you invest just ₹150 a day in SIP, how can you make more than ₹4.5 million?
Let's understand this in simple terms with an example:

You invest ₹150 daily.
That's approximately ₹4,500 a month.
Annual investment is ₹54,000.
Now, suppose you continue this investment for 21 years.

Your total investment over 21 years will be:

Now, assuming your SIP yields an average annual return of 12%, a common assumption for long-term SIPs, your total corpus after 21 years will be approximately:

Investment amount will be ₹11.3 lakh.

Wealth gain over 21 years will be ₹35.6 lakh.

The total maturity fund will be ₹46.9 lakh.

This means you invested just ₹11.2 lakh, and after 21 years, you have a corpus of over ₹45 lakh.

Duration SIP Amount (₹) Future Value (₹)
21 years 4500 46.9 Lakhs
1 year 4500 0.6 Lakhs
2 years 4500 1.2 Lakhs
3 years 4500 1.9 Lakhs
4 years 4500 2.7 Lakhs
5 years 4500 3.6 Lakhs
8 years 4500 7.1 Lakhs
10 years 4500 10.1 Lakhs
12 years 4500 13.9 Lakhs
15 years 4500 21.4 Lakhs
18 years 4500 32 Lakhs
20 years 4500 41.4 Lakhs
21 years 4500 46.9 Lakhs
22 years 4500 53.1 Lakhs
23 years 4500 60.1 Lakhs
24 years 4500 67.9 Lakhs
25 years 4500 76.6 Lakhs
26 years 4500 86.4 Lakhs
27 years 4500 97.3 Lakhs
28 years 4500 1.1 Crores
29 years 4500 1.2 Crores
30 years 4500 1.4 Crores
32 years 4500 1.8 Crores
35 years 4500 2.5 Crores

The Benefit of Long-Term Staying
The biggest benefit of SIPs is realized in the long term. The longer the money remains in the fund, the more compounding will work on it. Therefore, if you plan to stop your SIP after 10 years, you will lose significant benefits. Patience and consistency are the keys to SIP success.

Conclusion
Spending just ₹150 daily on a SIP, equivalent to the cost of a cup of coffee, can help you build a strong fund for the future. The most important thing is to maintain consistency in your investments and avoid making hasty or fearful decisions. The market moves with time, and SIPs can help you leverage that momentum in your favor. (Note: This article is for informational purposes only and should not be construed as investment advice. Consult a financial advisor before making any investment decisions.)

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.