There are lot of mutual fund companies providing higher returns within stipulated period. You should just have knowledge as to how to invest. if you are not professional or not aware how capital market operates, no need to worry as SIP fulfills all your requirements. You can use Lump Sum Calculator, SIP with inflation calculator to evaluate result based on inflation.īenefit of SIP investment to get good returns is just start investing. Enter this details in SIP calculator, you will see that you have earned 1,315,086 returns on your investment. Your overall contribution toward SIP is 600,000 (5000 per month * 120 months). ![]() Let us now evaluate your SIP returns based on the above scenario. For example, assume that you earn 15% interest on your SIP for 10 years of monthly investment. Contributing amount 5,000 every month accumulates throughout the period to make large amount of money. Mutual fund organizations invest the money on your behalf which gives assurance for systematic investment.Ĭompounding interest is the main feature of Systematic Investment Plan (SIP). As SIP automatically deducts your money, investment is maintain with consistency. This money will be allocate in mutual funds on regular basis. If you start investing in this scheme from last 10 years towards SIP, then 5,000 every month will be deducted from your funding’s. Let us take XYZ mutual fund investment scheme for an example. Now you will have to research which is the largest mutual fund in your country which has consistently performed well in long term. Let’s say you earn monthly salary of 50,000 and you decide to contribute 10% every month towards SIP. How Sip Works with ExampleĪ Systematic Investment Plan (SIP) allows you to invest regularly on specified intervals. Its beneficial to understand how SIP helps to grow your investment. Specialist money market experts takes care of money invested and we do not have to worry. Systematic Investment Plan (SIP) works similar to mutual fund.
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