Business Desk: Nowadays, a popular way of investing in mutual funds is SIP (Systematic Investment Plan). The main advantage of SIP is that you invest a fixed amount every month, due to which your investment amount gradually increases. If you invest in SIP for a long time, then you can get good returns in it.

What is SIP and how does it work?

In SIP, you invest a regular amount every month. This investment amount goes into the mutual fund you choose. Even if you start investing with a small amount, you can still benefit as this process helps grow your money over time.

How much return will you get if you invest Rs 2000 per month?

Suppose you invest ₹2000 every month in SIP and get an average annual return of 12%, then how much amount can you get after 10 years? By depositing ₹2000 per month in 10 years, you will have approximately ₹4,64,678. Out of this, ₹2,40,000 will be your investment amount and ₹2,24,678 will be your return.

What will happen if you invest Rs 3000 in SIP?

Now if you invest ₹3000 a month, your deposit amount will grow even more in 10 years. After 10 years you will get around ₹6,97,017 , out of which ₹3,60,000 will be your investment amount and ₹3,37,017 will be the return.

Take advantage of the benefits of SIP

There are many advantages of SIP. The biggest advantage is that you can start with small investments and gradually build up a large amount. It helps you grow your investment over time. Apart from this, it gives you the opportunity to invest monthly instead of making a huge investment at one time, which reduces your financial pressure.

Why is the 10-year period important?

10 years is a long time, and the returns on investment over a long period can be very good. This is because returns for mutual funds are stable but keep increasing over time. While investing in SIP, you also have to face the fluctuations of the market, but over time it gets balanced and the returns are better.

 PC:Punjab Kesari